Strip out California, Nevada, Arizona and Florida and Prime Foreclosures Are Down

Strip out California, Nevada, Arizona and Florida and Prime Foreclosures Are Down

CNBC is reporting this and it would seem to indicate that things aren't so bad.

Here is some more info to chew on:

Nationwide, 15% of foreclosures are non-owner occupied houses.  In these states, the number ranges anywhere between 25% and 32% (in Nevada).

It seems like this entire problem is really limited to speculation that occurred by a bunch of idiots in four states that was aided and abetted by Countrywide and a few other bubble-pushers who convinced provided the capital that they needed to make completely irrational bets.

I still believe that this so-called recession is an Angelo Mozilo-induced bump.

Jason Rodgers
Jason Rodgers: Jason Rodgers was an experienced research analyst for a major bank prior to retiring to run his own investment consultancy in beautiful Lihue, Hawaii. Jason contributed articles to BestCashCow from 2008 to 2014.

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  • mk

    September 08, 2007

    I agree. The whole housing meltdown is speculation driven. Speculators drove up construction activity and prices. Low interest rates made buying affordable and innovation in mortgage industry resulted in risky products. Credit card style minimum payment programs were created to attract short term borrowers such as flippers who could now buy more houses for the same monthly outflow.

    This also resulted in mortgage fraud with investors borrowing more than what a home was bought for and then walking away from the home.

    Of course the real pain is felt by those unsuspecting home owners who bought at or near peak with variable rate loans and are shocked to see their monthly mortgage payment go up and home's market value come down.

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