Complex sentence: Many of these people are in risky subprime, adjustable rate and negative amortization loans are falling victim to dramatic payment increases; without the ability to refinance out of these loans the only answer for many is foreclosure or loss mitigation.
Split into simpler sentences: Many of these people are in risky subprime, adjustable rate and negative amortization loans are falling victim to dramatic payment increases. Without the ability to refinance out of these loans, the only answer for many is default and foreclosure or loss mitigation.