If real estate is local, foreclosures must be, too.

According it May 2009 foreclosure trends report, foreclosure-tracker RealtyTrac showed that more than half of the country's foreclosure last month were concentrated across just 3 states:

1. California
2. Florida
3. Nevada

On a population basis, these 3 states represent 19 percent of the U.S. population.

The statistic can be startling, but no matter in which state you live, it's important to understanfd that foreclosures "somewhere else" have far-reaching influence.  This is because -- unlike you and I both -- a mortgage lender's personal geography isn't limited to just one city or one state.

In contrast, lenders "live" everywhere. 

As foreclosures degrade lender loan portfolios, consumers have to deal with things like higher downpayment requirements, tougher underwriting hurdles, and larger fee sets. 

Furthermore, similar to the fate of homeowners insurance rates after a hurricane, borrowers with less than 20 percent equity find that the cost of their private mortgage insurance increases dramatically, or becomes generally unavailable.

These changes impact to homeowners in all states -- not just the 3 named above.  And in some cases, they mean the difference between a home loan approval and an underwriting turndown.

That said, foreclosure-seekers are finding excellent affordability in real estate right now -- especially Snowbirds in search of warmer-climate homes for vacation or retirement.  It's one reason why May's Existing Home Sales report showed West Region sales up by nearly 20 percent -- there's plenty of good value there. 

Additionally, first-time home buyers in all markets are finding foreclosed-home price points to be sometimes irresistable.

If you're interesting in buying foreclosures -- either for personal or investment use -- the good news is that foreclosure-related information is generally available to the public.  Your real estate agent, for example, should be able to produce a complete list of available foreclosed home for you in whatever your target market is without much effort.

Or, if you're just kicking the proverbial foreclosure tires, consider using a free, online tool like RealtyTrac's "homes for half price" database.  It's a comprehensive, state-by-state listing of foreclosures with a 7-Day free trial attached to it.

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