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Flippers and other speculators investing in single-family homes helped drive up prices in many hot housing markets during the boom, they’re now contributing heavily to mortgage delinquencies in several of those markets, according to a report released by the Mortgage Bankers Association (MBA).

• As of June 30, in Nevada, 32 % of all prime mortgages in default and 24 % of subprime defaults were on non-owner occupied properties.
• The numbers for Arizona were 26 % prime and 18 % subprime.
• In California, they were 21 % and 15 % respectively.
• The default rates in Florida for non-owner occupied homes were 25 % for prime loans and 14 % for subprime ones.
• In the rest of the nation, non-owners accounted for just 13 % of prime loan defaults and 11 % of subprime.

“When this over-supply became apparent and prices began to fall, many of these investors simply walked away from their mortgages.” Doug Duncan, the MBA’s chief economist, said in a statement.

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Delinquencies hit 5.12 % of all outstanding mortgages in the second quarter, up from 4.39 percent a year ago according to the Mortgage Bankers Association (MBA) quarterly survey. The loans actually entering foreclosure proceedings stood at 0.65 %, a rise from 0.58 % in the first three months - and the highest rate in the MBA’s 55-year history.

As stagnant home prices, more Americans are falling behind in their, auto-industry weakness and climbing interest rates have taken a toll on housing affordability. The survey revealed steady increases in all categories of delinquencies among mortgage borrowers, but problems in subprime adjustable rate loans drove much of the increase. Homes entering the foreclosure process in Arizona, California, Florida and Nevada drove the national increase - the national foreclosure rate would have otherwise declined.

Many investors simply do not have the same level of interest in retaining their properties than do owner-occupiers who have, historically, always strived to keep their properties.

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