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years, trying to pay off their real estate debts.'' The Californians most obviously at risk are homeowners who federal home loan bank of new york refinanced to patch up faltering finances or, worse, to forestall a foreclosure. Also at risk are hordes of recent home buyers who stretched to buy homes using interest-only loans, ``option ARMs'' and other exotic mortgages that they would like to refinance before federal home loan bank of new york initial monthly payments vault higher. Even the affluent are vulnerable if they lack enough insurance to cover their losses if their homes were severely damaged by an earthquake, federal home loan bank of new york or other natural disaster -- and they try to hand the keys back to the lender. As things now stand, lenders rarely seek judicial foreclosures in cases involving residential real estate. The obvious practical reason is that lenders typically foreclose as a last resort, and homeowners are broke and federal home loan bank of new york little prospect of every repaying the loan. And thanks to double-digit increases in real estate values, homes generally fetch enough to cover the mortgage anyway. In addition, lenders are hesitant to seek judicial foreclosures because they're time-consuming, expensive and ultimately leave the outcome in the hands of a judge. package loan participation mortgage reverse mortgage repayment mortgage But that reluctance could wane if federal home loan bank of new york values tank and foreclosures rise, some experts say. ``If property values go down by 20 percent, refinance federal home loan bank of new york
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