SF Real estate

This piece from a bay area mortgage insider who has sold billions in Negative Amortization PRIME jumbo mortgages explains why SF real estate prices have held so far. As the borrowers reach the 3 to 5 year max that they can add to the principle, payments will double or triple in some cases. This will be an increasing problem in 2008 as the tide from 2003 to 2005 begins to come in.