Every day I hear someone else being interviewed on CNBC that states, in some form, that the people being foreclosed on are those who overbought or were "irresponsible."  This is a careless generalization.  Most of the people that we encounter in a Jacksonville pre-foreclosure or a Jacksonville short sale situation did not overbuy at all. 

In reality, we are seeing people who have since lost their jobs and can't find work.  We are seeing people who have since had devastating medical problems.  We are seeing people who have since experienced a drastic and unanticipated reduction in income.  We are seeing people who would love to be able to keep their homes.

When these people found out that they had to try to sell their home and reduce their bills they also found out that they couldn't.  The market had already dropped and they owed more than their home was worth.  They did not cause the market drop to the point where they could no longer get out and pay off their mortgage.  But because of the market drop they no longer could sell their home for what they owed. 

This forces those in this position to either give up their home, or explore the option of a short sale.  Either scenario further drives down neighborhood prices. 

The next person to find themselves in the same situation faces an even deeper deficit.  And so the cycle goes.