Ten states, including California, Nevada, Arizona, Florida, Illinois, Georgia, Ohio, Michigan, Texas and Virginia accounted for 75 percent of all foreclosures. Theyre bubble states or rustbelt states (and getting rustier by the day). ... But when home prices drop, millions more Americans go underwater with their loans: They owe more than the house is worth, and the temptation to walk away increases. Also, the Obama Making Home Affordable program caps refinancings out at ...