Ladera Ranch, a nine-year-old gated community of 25,000, the type of community every american dreams for. These postmodern townhouses go for up to $4 million yet foreclosure seems to be in its near future. Over 100 homes in Ladera Ranch are in pre-foreclosure while another 100 are already up for auction. When there are so many properties in distress, property value drops widely, and trying to sell could be a nightmare.

This isn't even the worst of it, there are plenty of places in this situation all over greater Los Angeles. Prices are down 18% to 28% in the metro area's five counties as of march. These drops are pushing LA to be a very bad place to try to sell a home right now. The same problems are found in Florida, the Southwest and much of the Northeast, where loans are becoming more and more difficult to handle. Foreclosure have increased in 98 of the 100 top markets in the country, 56 out of 100, have seen prices drop. The Midwest still proves to be vulnerable to a weak economy.