- Nevada – in the third quarter of 2009, more than one in every 20 Nevada households went into foreclosure.
- Florida – had unrealistic appreciation for the last 4 years.
- California – claims many toxic loans to non-English speaking buyers.
- Arizona – is severely overbuilt – over 80,000 vacant homes in Phoenix alone.
- Idaho – unable to sustain their 20% appreciation every year from 2003-2006 combined with the current economy.
- Michigan – automotive related job losses.
- Illinois – received the third largest volume of foreclosure notices in the US
- Utah – in 2009, more than 42% of their sub-prime loans adjusted, the national average was 27.8%
- Maryland – officials are blaming exotic loans and balloon mortgages
- New Jersey
These state all had unsustainably high home prices and many buyers who really couldn’t afford the houses they were purchasing — most with toxic mortgages — followed by downturn-related unemployment. It was the perfect storm for a real estate collapse.
Unfortunately, foreclosures are not letting up. RealtyTrac reports more than 300,000 U.S. properties received a foreclosure filing in November 2009 for the ninth straight month.