When discussing mortgages in Nevada, one cannot help but shake one's head in sympathy for all the foreclosures in the state. In fact, Nevada leads the country with places like Florida and Arizona in the number of repossessed homes. Essentially, owners wound up with mortgages worth a whole lot more than their very houses.

Because stocks were still down several months after the September 11, 2001 tragedy, a large portion of investment funds were directed into real estate instead. People have suggested that these mortgages had been packaged as investment vehicles and eagerly bought up as such, which loans were quickly sold at a profit to institutional investors who did not exercise due diligence in analyzing all possible consequences.