"underwater" mortgages

[xoxoxoBruce]

The bankers/brokers were telling people they could buy with an ARM, then switch to a conventional mortgage when they wanted to. That was a lie that buried a lot of people, when interest rates soared.

Just because your house is worth less than you paid for it doesn't mean you are in danger of foreclosure... hell, most things you own are worth less than you paid.

The people in trouble are the ones that either lost their income, or had mortgage payments increase more than they could afford.

Originally Posted by DanaC

But I don't understand money and financial matters. I don't understand it when someone explains it. I could have gone off and read all about mortgages and I still wouldn't understand it.

Bullshit, I'm sure you could if you put the time and effort into it. You haven't been in the position to spend hundreds of thousands of dollars (pounds), so you haven't taken more than a cursory glance at how it works.
Sure, it's easier to go to the banker whom you trust, which was your point, by I'm saying you could understand it, if you had a mind to.