Comments on: The Foreclosure Crisis, Revisited

By: mike

mike — Wed, 18 Mar 2009 00:38:09 +0000

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.

By: Chad @ Sentient Money

Chad @ Sentient Money — Mon, 09 Mar 2009 21:18:32 +0000

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.

By: KC

KC — Mon, 09 Mar 2009 14:34:12 +0000

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.

By: TaxRascal

TaxRascal — Mon, 09 Mar 2009 14:06:07 +0000

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.

By: thomas

thomas — Mon, 09 Mar 2009 06:04:48 +0000

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!

By: Gene at www.kitchentablenomics.com

Gene at www.kitchentablenomics.com — Sat, 07 Mar 2009 19:28:04 +0000

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.

By: the weakonomist

the weakonomist — Sat, 07 Mar 2009 14:21:18 +0000

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

By: Nate @ Debt-free Scholar

Nate @ Debt-free Scholar — Sat, 07 Mar 2009 14:13:30 +0000

I have always wondered… That is very interesting! Did they name the counties?

Thanks,
Nate