A Satellite Tour of Foreclosure Wastelands

January 27, 2011 by  
Filed under Debt and Credit

If you are a visual learner, you will be impressed or even shocked by a satellite map view of cities where foreclosures are dominating the real estate landscape.

The Business insider has compiled data of 20  U.S. foreclosure hot spots and presented that data as red dots on Google maps. As you might predict, California and Florida take most of the top foreclosure spots.  Las Vegas is holding on to first place, with 1 in 9 homes currently in foreclosure.

I believe the foreclosure problems today would be far less, if the government had not intervened with all of its futile “save the underfunded homeowners who over-borrowed” programs. All this did was delay the inevitable.

Here is the link to the satellite tour.: A Frightening Satellite Tour Of Americas Foreclosure Wastelands.

Do you think when all of this over lenders will remain steadfast in requiring substantial down payments and rock solid personal balance sheets? I think most will until some idiot politician renews the call for “homeownership for everyone.”

Your thoughts?

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5 Responses to “A Satellite Tour of Foreclosure Wastelands”
  1. GW in TN says:

    Very sobering! Thanks, as always, for sharing.

  2. Another Reader says:

    Lending is already loosening up. Banks go out of business if they don’t lend….

    • MasterPo says:

      Not necessarily.

      Banks are getting essentially “free” money from the Fed.

      They can either:

      1) Buy (invest) that money in 1 ‘risk free’ (as much as anything is these days) 30 year Treasury bond at about 4.5%.


      2) Loan it out as a 30 year mortgage at around 5% with all the uncertanties and risks that come with it.

      Which do you think they are doing more of?

  3. Rick Beagle says:

    There is an interesting side article about people who are walking away from their property even though they can afford to pay the mortgage. In one case, the “home” was purchased for 400k, and if I heard the 60m clip correctly, it is now worth 80k. So they are walking away from it.

    The article questioned the morality of this by individuals, insisting that the perceived lack of morality of doing this by Americans was responsible for more people no walking away. Furthermore, they justified the actions as reasonable business decisions (insert flippant comment about if a corporation can be a citizen) given the enormity of the fiscal dead weight. It then went on to cite several big banks who did the exact same thing for the same reasons at a much larger scale.

    As for banks getting free money from the Fed, I think my previous posts pretty much sum up my opinion on said topic.

    Master Po,
    I see the Republican and Tea Part convention is underway in California? Pretty blatant corruption, but don’t you worry, the faithful will ignore it and declare it a friendly get together. Disgusting.

    Rick Beagle

  4. MasterPo says:

    If a previously $400k house now has a market value of only $80k then PT Barnum was totally correct and the buyer got what they deserved IMO.

    Probably will be some attempt at legislation to make these kinds of “strategic defaults” harder to do.

    NTL, I’m worried most about the precidences this sets. Sure the house/property may have come down in value. But that holds for so many other things people routinely buy on installment credit. You buy a car on a 36 month loan. 12 months later the car is no way as valued as it was when you first drove it off the lot. So is it OK to say you’re not paying for it anymore? I don’t think so.

    So now a convention is “corruption”? Maybe it should all be done via FB. I’ll expect you to post the same when the Dems hold theirs next.

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