2 of 10
BACKNEXT
Provo, Utah
Foreclosure rate: One in 24 homes
Percent increase: 101%
National rank: 30th
Unemployment rate: 5.5%

Provo is the hub of the second largest metro area in Utah and is the home of huge Brigham Young University. The economy is quite strong and unemployment low, yet foreclosures doubled this year.

"We've seen big increases this year because the economy slowed down rather later than elsewhere in the country," said Scott Schaeffer, a professor of finance at Utah State.

Home price increases also remained modest until the last couple of years of the boom, when other hot markets had already started to cool. It was only about a year and a half ago, according to Schaffer, that home prices started to fall in Utah.

Foreclosure rates seem high, considering that prices never rose as crazily as in bubble markets and the economy has remained strong.

One factor hurting Provo borrowers was a lax regulatory climate: Predatory lending was common, according to Schaeffer. Often it took the form of affinity fraud in which scam artists would infiltrate churches or other organizations and exploit the trust of other members to stick them with unaffordable mortgages.

That has translated into filing rates that have risen by 579% over the past two years.

Dan Christenson, president of Coldwell Banker Utah, said the state has always been on the high end of the foreclosure rates.

"People are buying houses they can't really afford," he said. "When there's any kind of change in their circumstance, it's a challenge for them."

NEXT: Portland, Ore.
Last updated February 01 2010: 3:46 PM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
Star Trek technology that we use today With the death of Leonard Nimoy, the actor who played Star Trek's Spock, we remember his character's legacy: The technology we use every day. More
Zombie brands with a second life Where you can still get an Ionic Breeze air freshener. The Sharper Image and five other bankrupt brands still walk among the living, sort of. More
4 trends popping up in high-end kitchens Here's what luxury homeowners are adding to their kitchens. More

Special Offer