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).

Home Values: Downward Spiral or Return to Normalcy?

Here is a history of home values over the last 100 years. Home values has you can see have stayed around 100,000 on average and only increased an average of 10,000 in 1950. In the 2000's values skyrocketed to over 200,000 because credit has gotten so cheap and easy to get. We are now paying the price for making credit to easy to get. The housing market will survive if we allow the market to return to normalcy and get credit to a manageable point. The Federal Reserve needs to RAISE interest rates and leave foreclosures alone! Anything else will cause future problems even if the problem is "fixed" temporary. Look at the bank bailouts, companies are canceling meeting, advertising, and trips causing hotels to struggle and layoff workers. HMMM............the bailouts are causing job loss!