You mention the interest rate resets. If rate are resetting based on todasy envoironment, form in terest rate standpoint these peopl who took out option arms are going to look fairly smart. Additionally if their payments stay in line with what they wer previously paying then it could stem the decline in housihng long enough fo prices to stage a rally. That would suck as it would lock many of the savers (myslef included ) out of the housing market.
