Do you really think that a gain that large that came from thin air can hold? If the answer you think is yes than you should refinance it all the way up and buy as many homes as you possibly can. If people really thought that “real estate never goes down”, then there WOULDN’T be any inventory at all. It would all be bought up.
This is all common sense. I can’t fathom how people could believe that prices were just going to continue to climb up to the sky. It was an unreasonable assumption and the ones who got hurt can’t really blame the realtors because they should have used the organ between their ears. If you can’t afford the house when the arm resets, you can’t afford the house period.
