> gMoney wrote:
> "Here's what I make, here's what I've saved, here's the range for what I
> want to spend on my next house...."
>
> "Ok, you're approved!"
>

That's how people are walking away from their mcmansions, and -
bluntly, I'd do it too.

Basically they see their $500k house worth $350k and their ARM about
to adjust so they do what you said and get approved.

They buy the $350k house for a better fixed rate than their ARM and
and tell the $500k bank to feck off knowing that they've used all the
credit they need to for the next 7 years.

Now the taxpayers own $500k of debt (unless the house can be sold for
some of that).

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