Foreclosures now hitting previously untouched areas of the US

The foreclosure problems in California, Florida, Nevada and Arizona continue to batter those markets.  This has been well covered.  However, now foreclosures are hitting areas previously spared from the problem.  I recently came across this article on the website of the Nashville Business Journal.  According to the article approximately 25% of the Middle Tennessee are home builders are either out of business, or bankrupt and that buyers have been able to buy foreclosures that previously sold for almost $600,000 for only $250,000.  The article also states that part of the problem is "equity calls" (similar to a margin call) that lenders are hitting home builders with that are a result of the declining market value of the builders' inventories.  Based on some research that I conducted it appears that this market is still significantly overbuilt due to a boom in new construction from 2005 through 2008.  It will take some more time and some larger price declines before hitting bottom.