AmericanForeclosures.com

August 31, 2009

Why is the Rate of Foreclosures so High in Some states like Florida, California, Nevada, and Arizona and not others?

Filed under: Uncategorized — americanforeclosures @ 1:08 pm

This has been a question on my mind and others for quite some time. Why exactly is the foreclosure rate so high for some states and not others? There are certain observations that we can make to help us reach some answers. First let’s look at infrastructure.  Many towns in Florida simply weren’t built for getting high paying jobs, just the sunshine was marketed. Leaving room for jobs is important when planning a city and going on without it is a disaster waiting to happen. People in California will pay a ridiculous amount per square foot for a condo or house that isn’t really worth that much. The jobs that they get aren’t nearly paying enough for this extra cost and that combined with other un-factored costs of living leave people stranded and facing foreclosure.  Let’s also not forget about Real Estate investors. Buyers were looking to invest in houses in these states. Then all of a sudden, the housing market bubble burst and home prices dropped dramatically, leaving them no chance for profit and facing foreclosure on the properties.  People put too much money into these states based on artificially inflated prices and “fun in the sun” when there really was no good market to begin with.

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