There is a big error in the map and the following statement though:

“ONE in FIVE properties in FL and NV are in some stage of foreclosure.”

What you meant I think was that one in five homes _that have mortgages_ are in foreclosure — your figure is incorrect as it ignores all the homes that are owned free and clear. It would be interesting to know how that changes the numbers – one in eight or ten homes perhaps in FL/NV? A drive around some neighborhoods noting “For sale” signs might give an idea.

Retirees in particular have often paid off their homes. In my own family, 2 of 4 homes are owned free and clear and the other 2 were purchased in the 1990’s. After being paid down for 10-15 years and because they were bought at 1990’s prices before the bubble, there is tremendous ’skin in the game’, too. So in my family only 1 of 4 homes has even a small chance of going delinquent (should my brother lose his job.) 3 of 4 simply not possible.

I think because of the many Americans like us with a lot of home equity and savings, after the Option ARMs resets wring out the remaining weak hands, we are likely to see some sun break through the clouds in housing and the economy. The scary numbers we are seeing now are the subprime/lost job/overpaid/minimal down payment crowds. I bet that 2/3’s or more of existing mortgages are old enough to not fit that bill.