A survey by the Mortgage Bankers Association found that mortgages on properties that aren't occupied by the owner -- mostly investment homes -- account for between 21% and 32% of the defaults on prime quality home loans in Arizona, California, Florida and Nevada, states where overdue payments are mounting fast.

According to the Wall Street Journal, the four states were among the favorites of speculators during the housing boom. The homes were bought to flip, but with prices in decline, the strategy of flipping is backfiring.

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