I work for CurrentForeclosures.com and we have been seeing a huge increase in the number of foreclosures across the nation over the past year. I believe that is is mainly because of subprime lending and ARM loans-and the ARM interest rates are set to rise early next year for a large majority of homeowners. I don't think that the market will turn around until mid-2008....what are everybody else's thoughts?

Agreed. The ARMS are really killing a lot of people. An ARM, option ARM, etc... are great deals but you have to take care of your credit so you can refinance out of these things. A lot of people though they'd get a 2/28 ARM and refinance it. The problem is a lot of them saw the rates weren't as pretty as their ARM and didn't want to pay closing costs so they were stuck with the loan. Then the ARM adjusted and they let their credit slip and the value of their house went down so they weren't able to refinance and of course the bank comes knocking but the buyer can't afford to pay so then it goes into foreclosure.

Of course that was just an example of how tons of people lose their home, but there are a million variations to the story.

I don't know if I agree with mid 2008, I think it will be mid 2009 of course my crystal ball isn't working to well presently.