10 Cities Facing a Double Whammy of Default Risks

High unemployment and negative equity are key mortgage default drivers. These markets have both.

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Slide Show: 10 Cities Facing Double-Whammy Defaults

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10. Toledo, Ohio: The housing market in Toledo also faces high unemployment and negative equity. In the fourth quarter of 2009, local unemployment stood at more than 12 percent and roughly 28 percent of homeowners had negative equity. As was the case for Rockford and Detroit, Chen fingered the disappearance of manufacturing jobs and the proliferation of risky mortgages for Toledo's housing headaches.