The top 5 states with the highest number of foreclosures per capita are Indiana, Michigan, Wisconsin, Ohio and Maryland. What do these states have in common?

The easy answer is high taxation compared to the national average. High taxation keeps businesses from starting up or in some cases from staying in the state. In the most dramatic of cases a business can be closed because of taxation that is more designed to extract as much money as possible from the business rather than being designed to encourage the business to grow and stay in the state.

Low unemployment is a leading indicator of foreclosures. Low employment is not good even for the investor as once the foreclosure is purchased it will need to be sold or rented to someone that has a steady income. Be aware of the employment in the area that the home is located as it will impact the ability to sell or rent. This rule applies to Cities and Counties as well. This is not to say that there are not good opportunities in these states or any others. It is just part of the larger equation that needs to be added rather than ignored.