Other 46 states start to notice Sand States caused mortgage meltdown
"From the Associated Press:
Foreclosure aid likely to help 4 states most
By Alan Zibel
WASHINGTON — The nation's foreclosure crisis is centered in four
states. But taxpayers across the country will feel the pain of bailing
them out.
California, Florida, Nevada and Arizona generated about half of
all foreclosure filings nationwide last year, according to RealtyTrac,
even though residents in those states hold just a quarter of U.S.
mortgages. Since mid-2007, skyrocketing foreclosures in those states
have been magnifying the national rate.
As I reported last September, even though the four Sand States (which
have 21% of the country's population) accounted for about half the
foreclosures, they must have accounted for an even higher proportion
of the defaulted dollars, which is the key variable in setting off the
world financial crisis. That's because median home prices in
California were almost triple that in the rest of the country at the
peak of the bubble.
As lawmakers prepare to spend up to $100 billion in financial
bailout money on a sweeping foreclosure prevention plan pushed by
President-elect Barack Obama, the discrepancy is adding another layer
to a problem already confounding economists, politicians and
homeowners....
The Sunbelt states now in trouble are the same ones that for
decades have taken jobs and residents from states in colder climates.
Plus, states like California were also breeding grounds for toxic home
loans.
Plus, the Sand States have really, really nice weather this time of
the year (e.g., it's been sunny and 75 in LA for the past week), which
doesn't decrease resentment, let me tell you. So bailout programs mean
that fraudulent Sand State homebuyers can continue to sunbathe this
winter in their foreclosed backyards, while taxpayers in the rest of
the country huddle indoors and pay for them.
... To be sure, not all foreclosures are in the four states
dominating the numbers. And not all borrowers acted irresponsibly.
Consumer groups say legions of borrowers were duped into loans that
they didn't understand, and deserve assistance.
To be sure, importing millions of people with grade school educations
into the Sand States didn't boost the local average level of financial
literacy."
http://isteve.blogspot.com/2009/01/o...tice-sand.html