You haven't seen anything yet. There are about 2.5M loans resetting this year and next at the subslime level, and those folks are out of a house and out on the street unless they can refi, and they only have till Sept before the loans get even harder under Fed mandate and they can't qualify.
We can see as many as 1.5-1.75M homes on the market at fire sale levels this and next year, unless the banks come to some resolution that they aren't going to crank up those loans the additional three or so percent they all are ready to pop at.
A 410K loan pushing $1800 a month teaser rate for example, is about to go to $3400 a month for somebody who didn't have to doc any income at all.
Only a guy making a minimum of 100K per year could take that hit, and most of these folks who qualified for these loans were making south of $60K if that.
Banks will have to bend over backwards to avoid the forty percent loss they are going to incur as a result of the loan debacle started by these vehicles.
We are crash landing unless the bank gets either Fed help or they extend the three year loan to five at some inbetween rate in order to give the owner some time to unload and not burden the market, or the market will collapse.