Housing news can't get any worse, right? Wrong. In May, Florida homes were 3 times as likely to enter foreclosure as those in other states.

One in five U.S. homes entering the foreclosure process last month were located in Florida. It's not the sort of ranking that makes you want to shout, "We're No. 1!"

But according to data assembled by Bargain.com, a Goleta, Calif., company that seeks to profit from homeowners' grief by selling lists of foreclosed homes that are for sale, it's the truth: Florida leads the nation in housing distress.

More Florida entered foreclosure in Florida than in any other state in May. And while 35 of 50 states saw a decline in new foreclosures last month, Florida's rose 22 percent. Bargain.com's figures include homes that either were sued for foreclosure, scheduled for auction, or sold back to the lender in May.

Is it something we said? Mark Vitner, senior economist at Wachovia Corp., cites two key reasons why the state stands out today:

- An abundance of properties owned by speculators.

- The relative ease and speed with which mortgage lenders can obtain a court-ordered foreclosure here.

The onetime Jacksonville resident says he was surprised to learn, after the fact, just how much speculation took place in Florida during the recent boom.

Many buyers told their lenders they planned to live in the homes they were buying.

"The truth is, people lie, " Vitner says.

Dubious distinction

Foreclosures took an especially big bite out of Florida in May. The state's ranks:

1st in the number of homes entering the foreclosure process (29, 530).

1st in the share of homes entering foreclosure that were either condos or townhomes (14 percent).

2nd in the proportion of homes entering foreclosure (1 in every 245).

4th in the rate of increase since April (22 percent).

http://www.sptimes.com/2007/06/13/Business/Mortgage_breakdown_in.shtml