investors make up majority of mortage defaults so much for the myth of the first time home buyer losing there home. Investors make up big part of defaults in California, elsewhere By ALAN ZIBEL, AP Business Writer Thursday, August 30, 2007 (08-30) 12:04 PDT WASHINGTON, (AP) -- Investors who tried to make a buck on the housing market are having an outsized influence on surging mortgage defaults in former boom states such as California and Florida, an industry group said Thursday. The Mortgage Bankers Association released an analysis of mortgage defaults in Florida, Nevada, Arizona and California, states that experienced dramatic price appreciation during this decade's housing boom. As of June 30, properties owned by investors in those states accounted for a higher percentage of defaults than the national average, the MBA said. "Defaults are on the rise in most parts of the country, but it should be recognized that it is not always the case of a homeowner losing his or her home but is often the case of an investor gambling on a continued increase in home values and losing that gamble," Doug Duncan, the trade group's chief economist, said in a prepared statement. Nevada had the highest share of investor-owned defaults. Among defaults on loans given to borrowers with strong credit, 32 percent were by investors. For defaults on loans given to borrowers with weak credit, 24 percent were by investors. That compares with a national average of 16 percent for less-risky borrowers and 12 percent for risky borrowers, according to the MBA. Arizona had the second-highest percentage of investor defaults, followed by Florida and California. The MBA's report comes amid debate about what effect the housing market's slump's will have on the economy.