Foreclosure Heatmap
I am working on a new research project involving foreclosures in the sub-prime market. I keep coming across some really intriguing data sets.
Courtesy of a RealtyTrac, below is a "Heatmap," showing the foreclosure filings on a per capita basis. The Redder the state, the more per capita filings there are.
Kinda surprising the way the concentration shakes out, ain't it? Colorado leads the nation, followed by Nevada, with Texas and Florida not too far behind.
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Real Estate Foreclosure Filings
Courtesy of RealtyTrac
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UPDATE February 7, 2007 11:23am
I see the problems coming from two distinct groups, the low end and the speculative high end.
The Specs got extended, using cash/borrowed money to play the flipper game. Most of these players are fairly well heeled (i.e., upper middle class) and were looking to make a few quick dollars. When the music stopped, they got caught without a chair. I suspect a large percentage of this group will be able to figure a way out of their bad investments with minor (i.e, no bankruptcy) losses. Painful, but not standard-of-living threatening.
The other group are the subprime mortgagees -- these are former renters that but for the very easy money, ultra low rates, and non-existent lending standards, would not have been able to buy a home. They paid up for ARM mortgages (7.75%), were over optimistic in terms of expectations for meeting their payments, and are now defaulting as their mortgages reset -- earlier and in greater numbers than previously.
Wednesday, February 07, 2007 | 06:28 AM | Permalink
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David Lereah was just on the 'Today Show' claiming the housing market has turned and is rallying.
Anyone good at pushing on a string ?
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Posted by: VJ | Feb 7, 2007 7:24:23 AM
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