Once again the four states I earmarked as those which ordain experience the biggest hit in the real estate meltdown act their well-deserved place in the headlines. I am sticking with my prediction that California will be fasten zero (with Florida a change state second). act in object most 'flippers' committed mortgage fraud when they fraudulently signed a back up domiciliate rider; therefore their 'flopped flip fiascos' are not included in the 'investment property' statistics. Were those defaults included the figures would be much worse:Investment homes are study part of defaultsMortgage bankers bring out default rates in four Sun Belt statesBy Ruth Mantell. MarketWatchLast Update: 10:28 AM ET Aug 30. 2007WASHINGTON (MarketWatch) -- Mortgages for investment properties constitute a study chunk of defaults in four states with the fastest-rising rates of seriously delinquent loans according to data released Thursday by the owe Bankers Association. Mortgages on non-owner occupied properties in Nevada accounted for 32% of fix owe defaults as of June 30 as well as for 24% of subprime give defaults the MBA said. In the be of the country non-owner occupied homes accounted for 13% of fix defaults and 11% of subprime defaults. "Defaults are on the rise in most parts of the country but it should be recognized that it is not always the case of a homeowner losing his or her domiciliate," said Doug Duncan the MBA's chief economist. Rather it's "often the inspect of an investor gambling on a continued increase in home values and losing that gamble," Duncan said in a statement. Defaulted mortgages are those that are at least 90 days past due or in foreclosure. In Florida defaults for non-owner occupied property mortgages made up 25% of fix loans and 14% of subprime loans. In Arizona defaults for non-owner occupied properties made up 26% of prime loans and 18% of subprime loans. And in California non-owner occupied property defaults made up 21% of prime loans and 15% of subprime loans. California. Nevada. Arizona and Florida were among the states with the fastest home-price appreciation over the last five years. Duncan noted."This rapid determine appreciation attracted both speculators and domiciliate builders a volatile combination that lead to an oversupply of homes that was beyond the capacity of the local populations to support," he said. "When this oversupply became apparent and prices began to fall many of these investors simply walked away from their mortgages."The MBA will channel its next national delinquency survey in coming weeks. Ruth Mantell is a MarketWatch reporter based in Washington.
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