The Foreclosure Crisis, Revisited
Tip It!Remember when I talked about how the foreclosure crisis is much more localized than the mainstream media would have you believe? Well, check this out… According to a recent report in USA Today, 35 counties accounted for 50% of the foreclosures that occurred in 2008. Amazing how such a small cross-section of the county could drag us down, isn’t it?
Published on March 7th, 2009 - 8 Comments
Filed under: Economy, Mortgages, Real Estate
About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!
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8 Responses to “The Foreclosure Crisis, Revisited”
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March 7th, 2009 at 9:13 am
I have always wondered… That is very interesting! Did they name the counties?
Thanks,
Nate
March 7th, 2009 at 9:21 am
Click through on the link and it has a map of the counties. The ones outlined in red are the 35. They are centered around LA, SF, Florida, and the Chicago-Detroit area.
This was a good read. Thanks for the post Nickel
March 7th, 2009 at 2:28 pm
I see your point, but don’t forget also that 50 percent of the foreclosures did not occur in those handful of counties. Here in KC, the ripple effect from the ones down the street are what are stalling our property values and making the municipal budget writers blanch.
March 9th, 2009 at 2:04 am
No no no! This CRISIS is everywhere! we need MORE gov’t intervention to stop this CRISIS! Gov’t is the ONLY solution! This is the worst economy in HISTORY!
March 9th, 2009 at 10:06 am
That’s pretty amazing. At that level, you might be able to get down to the individual mortgage originators who helped the bubble take off. At some point, somebody had to relax their standards to the point that they were 1) getting lots of business, that 2) would lead to serious trouble down the road.
March 9th, 2009 at 10:34 am
This is going to change as more people lose jobs and can’t make their mortgage payments. Ultimately there will be more foreclosures due to job loss than there will be foreclosures due to bad loans.
March 9th, 2009 at 5:18 pm
Real estate still has a way to go, so the distribution of foreclosures could skew away from those 35 counties as job loss becomes more of an issue than bad loans.
March 17th, 2009 at 8:38 pm
CA, FL, MI, AZ and NV are the states that are driving this “collapse”. In 18 states, home prices have increased slightly. The remaining states are about even or slighlty down.
While the economic downturn is the primary factor for the decline in the aforementioned states, two states in particular stand out, due to high taxes and regulation, namely CA and MI.
I doubt if these states are doing anything to help by lowering income or property taxes, thereby lowering the debt service burden of homeowners, or at least what’s left of them.