Also, a lot of the problem is that people were approved for loans that had interest only payments for 5 years or low rates for 5 years and then balloon payments. Now that those are coming due and the houses are not worth what they owe on them, they cannot refinance.
I was actually considering this route with an investor, as I don't have 10% to put down. Can this still be an option with a fixed rate? It's definitely a buyer's market up here in Alberta. I don't want to go with a 0% down option, as my hands would to tied with shitty interest rates.