Banks and investors have not written down jumbo loans underlying the related MBS nearly as aggressively

The operational purpose of institutional policy and administrative law is the protection of capital. It seems logical that the application follows a skewed distribution related to potential impact on the equity of the holders of the paper at issue. Evan handed application would injure the institutions themselves thus its absence.

If foreclosures vs mortgage arrears (or possibly tax arrearages) by zip code could be plotted your answers would be forthcoming.

It would seem that there are more than a few factors – taxes, ability to sell at or above the loan value, occupancy vs. vagrancy. I also wonder in non-recourse states the ability to sue for past due payments is also not a factor.

Very true, again it is the highly leveraged who are in trouble and causing trouble for the banks. 5 million and then took out a [...]