Real estate doesn't ALWAYS go up. And right now, in some parts of the country, it's going down a bit, having been over-inflated! In any event, many of these mortgages are ONLY ok when they are given to qualified buyers - not people who are attempting to buy beyond their means. The mortgage industry, and for that matter, banks, need to clean up their acts. There is WAY too much loose, easy credit around. Personal debt/income ratios are nothing short of ridiculous, and coupled with the negative savings rate we currently have, I am surprised foreclosures aren't considerably higher.