Since 2007, foreclosures have dominated national real estate news.  You can't turn on the news or open a paper without seeing at least one foreclosure-related story.

But for all of the discussion, even two-and-a-half years after the peak of the housing market, home foreclosures continue to be geographically concentrated.

In looking at the latest stats from foreclosure marketplace RealtyTrac, more than half of the country's foreclosure actions from March 2009 occurred in just 3 states -- California, Florida and Nevada.

Those 3 states represent just 19 percent of the nation's population.

We can speculate about why these three states, in particular, dominate the foreclosure market.  Relative to other states, California, Florida and Nevada attracted an abnormal amount of real estate speculation and those homes were financed at a time when lender guidelines were at their loosest.

Values have since fallen and mortgage guidelines are more restrictive.  Homeowners, unable to sell or refinance, become more prone to default.  The same can be said for Arizona's numbers which, like the 3 states above, are disproportionately large.

The theory gains credence in looking at foreclosed homes in Illinois or Ohio. Both states have high numbers of foreclosures, but those foreclosures track more closely to the states' relative populations.  Likely, this is because neither state is considered a hotbed for real estate speculation.

Despite the country's somewhat local foreclosure distribution, foreclosure are a national issue.  This is because the banks that lend on homes lend in all 50 states -- not just 3 of them.  The impact of mortgage defaults in one region can quickly spread to others.

In part because of rising foreclosures nationwide, the following has happened:

• Mortgage guidelines have tightened for mortgage applicants
• Downpayment requirements have increased for home buyers
• Private mortgage insurance has become more expensive for everyone

This is an important set of changes for a would-be borrower or existing homeowner.  In some cases, the changes keep a person from qualifying for a home puchase or a refinance. Ironically, this can lead to more defaults which leads to tighter guidelines, and so on and so on.

You can search the March 2009 foreclosure report and foreclosure listings around the country on RealtyTrac's website.

(Post adapted with permission from Bring the Blog)

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Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.