We hear all the doom and gloom in the media, which attracts viewers and sells advertising never forget, on the whole mortgage crisis. Information coming out of the Mortgage Banker Associations National Delinquency Survey had an interesting twist on the foreclosure numbers. Almost half the states saw a decline in their forclosure numbers and the rest saw a very small change.

Where the biggest impact in the foreclosure starts were are the places where the speculators ran rampant: California, Nevada, Florida, and Arizona. The report indicates that these states foreclosure numbers are from speculators that are walking away from properties that are seeing the bumps in adjustable rate loans. The speculators recognize they are better off walking away from the properties than holding on to them.

“While foreclosure starts increased slightly from last quarter, thus setting another record, most of the increase was due to only four states, California, Florida , Nevada, and Arizona. Without these four states, foreclosure starts would have declined. 24 states saw a decline in foreclosure starts, while the rest of the states saw negligible increases, with the largest increases coming in Nevada (19 basis points), Florida (13 basis points), California (12 basis points), Maine (8 basis points), and Arizona (7 basis points).” via MBA National Delinquency Survey

This is not to discount the problems in the Rust Belt, Michigan, Ohio, and Indiana, but these problems are not necessarily housing related, they are part of a huge demographic shift out of the Rust Belt as industry and population are leaving and the housing inventory is plummeting in value.

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