The loose credit of the early part of this century is haunting us as millions of people with bad credit were offered mortgages and now millions of them have faced or will be facing foreclosure.

No down payment home loans, with adjustable rates (sometimes teaser rates to attract business but still elevated because of the borrower’s poor credit) seemed like a perfect solution.

But the value of the underlying collateral, the home, is falling fast, and these loans have no equity because of no down payment.

Rates on these mortgages could be as high as 10%at the time when prime mortgages were available at less than 6%, frequently resulting in mortgage payments of over $2,000 on even small homes. Every small adjustment in the ARM (Adjustable Rate Mortgage) could result in a $300 to $400 increase in the mortgage payment. Re- financing is not an option since credit conditions have tightened and home values have fallen. (Now the amount of the mortgage is more than the value of the house.)

Is there any help…