Below is a map of the United States identifying where the most foreclosures happened by county last year. As you can see California, Florida, and midwestern cities top the list. The reasons are obvious the prime causes are people living above their means with adjustment rate mortgages (The payments go up when clients don't pay well, Maybe the customers shouldn't have been given the loan but maybe they shouldn't have signed the paperwork! It is bad business to give loans to people who can't pay but it is equally has bad to buy things you can't afford!) The other reason is job loss and last year the large midwestern cities (Detroit and Cleveland) show this. While not paying is never good at least these people have a better reason. In short, is the country going through mortgage/foreclosure crisis or are the inevitable results of bad decisions by individuals and businesses being shown in very specific areas (Half of all foreclosures in 35 counties).