Tuesday, August 14, 2007

Zipcodes With High Defaults

I got really frustrated with Prosper when they removed the cities from the borrower's listings. This is why:

A study for CNNMoney.com by RealtyTrac, an online marketer of foreclosure properties, showed that 139 of California's ZIP codes fell within the top 500 for total foreclosure filings in the United States. The next highest count for any state is less than half that at 72 and is in another sun-belt state - Florida.


RealtyBid spokeswoman, Daphne Shannon, said, "The Midwest has always been very solid for us, but the properties we're seeing are moving across the country - they're from California, Arizona and Nevada."

Call me cynical, but I don't want to lend to people in areas with high mortgage defaults and foreclosures. I'm thinking that if someone has defaulted on their mortgage and is considering bankruptcy to hold things together, an unsecured loan is a trifle. I keep hoping that Prosper will add state information to their Market Performance engine, but until then, continue to highly scrutinize listings from California, Nevada, Florida, and Arizona.

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