Florida and California mortgages lead the nation in foreclosures after a 91% and 78% increases over a year ago, respectively, according to a recent report by RealtyTrac. The Sunshine State and the Golden State were the “golden boys” during the housing market boom from 2000-2005, when home values were skyrocketing. Clearly they let success get the best of them.

Lenders who granted mortgage loans to those who could not afford it, borrowers who accepted mortgages that could not be afforded and the housing industry that turned a blind eye to reckless practices. They are all part of problem that now finds the housing market in a potentially steep decline.

These types of practices, notably through subprime home loan lending agencies, occurred everywhere but are compounded by states that were really “booming”. Now these once flourishing housing markets are seeing empty unsold or foreclosed homes everywhere.

Numbers Indicate Backlash

The Nevada mortgage market leads the nation with one foreclosure filing for every 278 households and recorded a 77% rise over a year ago. Too many were built in Las Vegas the last couple of years, sending housing prices downward. Same thing goes for Arizona mortgages, as delinquency rates have risen 44.1 since February 2006.

The rest of the worst concerning foreclosure rates are Michigan, Tennessee, Ohio, Georgia and Texas mortgages.

For Texas, Michigan, Ohio and Georgia, though, foreclosure rates have improved both with the last month and year.

Overall, there was an 11.64 increase in foreclosure rates throughout the U.S. but a 3.91% increase over January 2007. 

With subprime adjustable rate mortgage loans scheduled to reset soon, raising mortgage rates for already struggling mortgage borrowers, these delinquency numbers could rise again in the coming months.