$30 billion home loan time bomb set for 2010 in San Francisco

A vast majority of San Franciscans are renters. Maybe next year some if them will actually be able to buy their own house. Always a silver lining.

When I bought my house, I got a fixed rate loan. I refinanced to another fixed rate loan when interest rates went low enough for it to make sense. If they had tried to give me anything else, I would have laughed at them. I do not understand how an adjustable rate mortgage can even be legal.

The problem is that it was legal, is legal and there has not been enough done to stop another financial crisis from happening again.

The banks got ya hook, line, and sinker. Pay attention next time, even though there may not be a next time...

How did a $100K home get sold for one million plus ANYWAY...IN THE FIRST PLACE? Who created the
come on.
Who set it up so there would be BLOOD IN THE STREETS and then buy buy buy?
Anybody answer that question yet?
Who started the real estate boom knowing that the prices were not just inflated but that it had to and would CRASH?

What ever happened to FLIP THIS CONDO??? and other such moronic shows on TV and ads battering away at everyone. The ads and TV segments that was emotional fraud.
I saw semi normal people getting caught up in it. FEAR was even used that if you didn't get in in time you could miss out and it would go to two million and you wouldn't have gotten in. People were desperate to become part of the OWNERSHIP SOCIETY before it went away.
A house used to be something that one bought at the current market value which appreciated at a small percentage each year. Then after a few decades they burnt the mortgage. The key here is steady but modest appreciation. Who done this dastardly deed?

This is a great example of greed in action. The home buyers gambled on a lower rate being available in the future or that their property's value would escalate to cover their gamble on the loan. Hello, suckers! You are the latest victims of the banking system!

could this happen to other cities in the U.S.??

To crofoot88 above. So when have banks ever done the right thing. Leaning more towards "The Word" these days in a desperate attempt to hold onto my sanity and not start grabbing everyone I see and yelling at them, "What the fuck do you think you are thinking about?" I have come to the conclusion that looking to anyone in politics if idolatry. That saying God bless America is blasphemy and that it is tragedy of unimagined proportions that we are de-evolving to the point I fear we can't even come up with the right questions to ask, let alone answers and solutions. Unfortunately, I believe my almost 21 year old daughter may have it right, when she mutters "We're doomed." Remember, Jesus was not a friend to Rome and he ain't a fiend to the USA these days.

The borrowers knew this would happen when they got these loans ..hard to feel bad about it.

Couldn't this problem have been solved as some suggested by changing the rates of the ARMs and letting the bankers have some losses that would have been futrure unrealised profits, and also letting those investors lose something and the borrowers who could not pay the new rates simply get a forclosure?
Seem like everyong would lost something this way and it would be more fair.
The banks took unnecessary risks, many of the borrowers did too, and the financial genusis who securitized the loans made out like sharks because they had nothing remaining in their hands.

This is a drop in the bucket compared to what is going to happen to the country as a whole. 50% of all commercial mortgages were financed in 2005 and are coming due next year, if the bank hasn't already called their loan in early in many cases. Don't worry about what rate you can get, worry about what principal you can get relative to the new lower value. And by the way, your credit cards are about to be cut in half, as in credit amount AND the value of the US dollar is going to be half current value by 2012.

i smell "firesale"

Well these people that have these A.R.M. know that they will have to pony up more money from the getgo. So why are they not doing something about it now before the rates change. I own my home out right and there is no way in hell I would put myself in a place where I could lose it.

next up ; mandated rent !

ok so if we the ppl alredy know how this tipe of mortgage loan crap will mess things up for a lot of ppl and we have the forsight to know that its going to hapin in 2010 WHY the hell dont the banks just do the right thing and not slamm borrowers with dramatically higher monthly mortgage bills? we all alredy know how that works out!

I hear Oaksterdam is nice this time of year.