That is the problem. The loans are NOT fixed on the ones that are failing. They are ARMS. Some are interest only payments for 1st 2 yrs. Those loans are blowing up now. Way too much inventory of houses out there. No more fools out there will buy the overpriced assets. Prices tumble. People who put no money down now are underwater and abandon home. Prices tumble more. People who put down some(5%) money are now underwater. They default on their loan. Prices go down more. People who put down 20 % will soon find themself underwater. It is a vicious cycle. Luckily it is not all over and mostly in FL and CA.