I would think that losing your home would be horrible no matter what tax bracket you are in. Your kids lives' get disrupted, your life gets crazy, etc.
Except if your rich you can go out and buy a Mercedes to salve the paing, whereas if you are poor you might be able to buy a Happy Meal.
I think it depends where you are defining as LA. I believe much of the unconventional financing for primary residences was the Inland Empire and Orange County. Speculators getting burned are getting their just desserts.