Yes it looks very scary until you understand that this is only for Subprime and Alt-A loans and then look at the actual numbers being considered. Over 94% of the loans in Florida are NOT Subprime or Alt-A mortgages. Of the less than 6% that are, most are current with their payments (over 70% Alt-A, 50% Subprime). So the troubled mortgages really amount about 2% of the total mortgages held in Florida. Florida, California, and New York look to be by far the worst hit areas.
Now I'm not saying it's not bad and won't get worse from here. The option ARM mess is still to come. I'm just saying the data so far shows a that most people (98%) CAN pay their mortgages and the whole country is not collapsing.