Nevada was listed as one of the four states with the most foreclosures in the first three months of this year. California, Arizona and Florida were also mentioned.
People who have taken out sub-prime loans, especially adjustable-rate mortgages (ARMs), have been clobbered as rising interest rates and weak home prices have made it increasingly difficult for them to keep up with their monthly payments.
The resetting of monthly payments on ARMs, coupled with recent increases in credit card minimum payments, makes it hard for those with fixed incomes to keep up with their debt obligations. Some argue that these folks should never have been approved to buy homes in the first place.