Last year mortgage foreclosures were essentially halted as lenders re-configured their processes to actually, you know, comply with the law. Now that lenders have consulted lawyers and gotten things in order, foreclosures are going to start. However the reprieve did nothing for borrowers who had too much house and not enough income to cover that fat ARM.
It would been a smart time to refinance, but doing that often requires an ability to pay for it and with so many people under employed and/unemployed, a refinance is hard to accomplish.
The fact of the matter is, this is a market correction that has to happen. As painful as that is for me personally to say.