Another sign of Real estate bust? (link)
 

http://www.latimes.com/news/printedi...42,print.story

How can this be? You have GOOD credit but you're lumped into the higher risk category? :helpme

Thats nothing to do with a burst. That is just idiot consumers not doing their research and grabbing the deal without reading the print.

Nope, as the article says "borrower beware". When handing out tons of loans, companies will jack up the rates so that you pay more if you don't know that you can get a better rate elsewhere. And as for those pre-payment penalties, well you have to read the fine print or get a lawyer to before you sign.

its the income to debt ratios..very few people in socal could actually afford the house they are in if they hadnt gotten 3x what they paid for their last one

EXACTLY! And financing schemes mentioned in the article doesn't help the situation and only make it worse.