[timr]

He's right. The traditional guideline is that you should pay about 30% of your net income on housing. You're right that the bay area is "different", but that doesn't mean it's different in a reasonable way. Most people really can't afford to own property here, by traditional standards.

Also, I'd like to point out that this woman took out an interest-only loan for the bulk of her debt, skimped on the deposit, and secured with another loan. Even if we use your standard (45% of net income), there's no way that she could afford the property.