[quote=FormerSanDiegan]
I don’t think resets by themselves outside of the option ARMS are going to be as much of a factor as the fact that property values have declined to the point where the owner is underwater.
[/quote]
This makes sense, but how big of a problem is option ARMs going to be for banks. If toxic subprime loans caused lending to seize up, what is the effect of option ARMs going to be, assuming that it hasn’t already been effecting things?