While news reports may have you believe that subprime loans held by the poor or people with bad credit histories are the primary reason for the recent rise in foreclosures, that is not the full story. The Mortgage Bankers Association released a study that indicates the major driver of defaults in Florida, Nevada, California and Arizona -- the leaders in the race to be the top foreclosure states [subscription] -- are owners who don't live in their properties. In other words, investors are driving the market in those locations, according to a story in the Wall Street Journal today.

The Journal tells the story of two real estate investors, one in Las Vegas, Nevada, and the other in Del Ray, Florida, who both bought multiple homes as real estate investments hoping to flip them quickly for a profit. Now that the bubble has burst, they can't flip the properties and they can't rent them for enough money to cover the mortgage payments.

The Nevada investor is a 40-year-old real estate agent who bought 16 homes hoping that by flipping them he could fund his retirement nest egg. Now he has a total of $45,000 in mortgage payments per month and can't afford them, so he stopped making payments on them and walked away. His credit score dropped from 730 to 400. The Florida investor hasn't walked away from his properties yet, but is planning to do so. He is a 53-year-old air-conditioner contractor who bought four units in a Florida condominium with the hopes of flipping them. His monthly mortgage payments total $4,000.