It seems to have already hit Colorado, and we did not experience a bubble. Today Colorado has the top rate of foreclosurese in the country. As I have said in one of my other posts here, the high foreclosure rate did not follow bubble-like appreciation, but rather was due to heavy job losses and a recession we never really recovered from. The link you cite adds to the blame other factors such as more home construction beyond existing demand, ARMS, IOs and unlicensed mortgage brokers. It’s here. Next come the falling home prices as sellers find they have to compete with all the foreclosures on the market. What’s responsible for the high foreclosure rate here is not what is in play in CA.
