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Lenders in the past had relaxed their rules on borrowers. Quite a number of Chicago mortgage shoppers found it very easy to get mortgages for homes they could not afford if using traditional mortgage products. Many were enticed by adjustable rate mortgages, interest only mortgages and other vehicles that hid the true cost of home ownership by offering initial monthly payments that made it easy to qualify for the loan.

Unfortunately for those who have these mortgage products the initial rate are transitioning to the adjustable period after 3, 5 or 7 years. At this point the rates adjust upward to more closely match the going rate for money. This can cause the monthly mortgage payment to balloon upward by several hundred or thousand dollars a month. Homeowners who were near the limit of their capability to pay monthly bills and living expenses are now scrambling to pay the increase in their home loan bill.