Inman Real Estate News - Study predicts 1.1 million foreclosures among ARM loans
Thanks to Shu Bartholomew for this link. This reminds me of the tortoise and the hare. The tortoise bought a house he/she could actually afford, with a plain vanilla fixed rate 30 year loan. The hare bought a McMansion that was far above his/her means, using a clever interest only adjustable rate loan. Then the hare made a fortune. On paper, that is. Unfortunately, we live in reality and not on paper. In reality, the hare got stuck with a house he couldn't afford to live in or sell, as prices fell and interest rates went up. You do remember that story from Aesop's Real Estate Fables, don't you?