That is right, 100% of a home worth about $120,000 back then. His home was paid for with inheritance money. He borrowed against it to finance his business. We also gave him $30,000 to help keep his business affoat, and will never see it again. Home values dropped about the same time he went out of business. He had to find work, so he just walked away, we just couldn't help him anymore. Value dropped to about $100,000. That is for a 12-1500 sq. ft. home. It was 1200 upstairs with a half basement (former garage) that he finished out into a room and kitchenette with the laundry downstairs. Not too big. He brought home maybe 30,000 a year with a family of 4, that is poor. As I said, we advised against it. Also, he is half native american from his fathers side. So, he was considered a minority, thus 100% loan. I know what I am talking about. He had good food, but didn't know how to manage the finances, no college or business training. So, if a lot of minorities got loans like he did, no wonder the fall. When the poor fall, the middle class suffer, because the home builders, electricians, plumbers, etc, can't build homes they can sell, so they go out of business, thus the middle class forcloses, then it begins to hit the rich when their companies suffer. Trickle up dominoes. Is that simple enough of an explaination. I see it in the home market. I design gas systems for new subdivisions and industries. They are still building homes for upper middle class and rich here, but not small homes. I have seniority in my job, there were 3 of us working engineering in my district, now I am the only one left. No one was laid off, just one was promoted, the other retired, and they decided not to replace them with the bad economy. However, I am very busy, thank goodness. I see these poor, I see a whole page of forclosed homes, almost all are in poor neighborhoods here. Your idea of middle class and rich having more forclosed homes, well I know Florida has been hit hard, but most of these are second or vacation homes. Rich may have abandoned these because of their businesses suffering, but they have probably kept their primary homes. Most people I am associated with who had these Florida homes and condo's rented them out about half the year. When people can't afford vacations, they can't get rent, when they can't get rent, they have to sell or abandon something.