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Foreclosures spread from bubble markets

RealtyTrac metro-level report suggests shift in epicenter

An analysis of foreclosure-related filings at the metro level by data aggregator RealtyTrac shows new hot spots emerging in cities not generally viewed as bubble markets, including Provo, Utah; Rockford, Ill.; and Lansing, Mich.All but one of the 20 metro markets tracked by RealtyTrac as having the highest rate of foreclosure-related filings during the third quarter were located in four states where speculation helped drive up prices during the boom: California, Florida, Nevada and Arizona. Those states also accounted for 37 of the 50 markets identified as having the highest foreclosure rates.But rising unemployment and interest-rate resets on alt-A and pay-option adjustable-rate mortgage (ARM) loans continue to "gradually shift the nation's foreclosure epicenters" toward areas that avoided the brunt of the first foreclosure wave, said James J. Saccacio, chief executive officer of RealtyTrac, in a press release.RealtyTrac counted 937,840 foreclosure-related filings during the...