No Peace in the Valley...

If you feel sheltered living way up here in the foothills, here is some news on what is happening to our friends down in the valley.

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California Foreclosure Notices at 10-Year High

On primary mortgages, homeowners were a median five months behind on their payments when the lender started the default process. The borrowers owed a median $10,784 on a median $331,200 mortgage.

On lines of credit, homeowners were a median six months behind on their payments. Borrowers owed a median $3,580 on a median $60,000 credit line. However the amount of the credit line that was actually in use cannot be determined from public records.

The default numbers reflect wide regional differences. The first-quarter numbers were a record in San Diego, Sacramento and Contra Costa counties. In Los Angeles County it was almost 60 percent below the first-quarter 1996 peak, reflecting the depth of the recession in the mid-1990s as well as relative strength in today's market.

So, I am sure all of you out there trying to sell your home are comforted by the "relative strength" of the today's market.

On a loan-by-loan basis, mortgages were least likely to go into default in Marin, San Francisco and San Mateo counties. The likelihood was highest in Sacramento, Riverside and San Joaquin counties.
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Sacramento Near Top in National Foreclosure Activity

Some 3,400 Sacramento County property owners faced foreclosure in the first quarter of 2007, up nearly 200 percent from the same period last year.

In sheer volume of defaults, Sacramento County is in the top ten nationwide. Hey, nationwide status - we're not just a cow-town anymore!
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FOR ILLEGAL IMMIGRANTS, HOUSING SLUMP TAKES TOLL

The housing boom has ended. The slump is clearly evident in the multitude of For Sale signs on lawns around the nation. Illegal immigrants used to work in the construction field but now are finding jobs harder to find.

"From Fresno to Sacramento, big tangles of wire and PVC pipes clutter vacant lots in silent subdivisions, waiting for houses to be built — some day. Dozens of “For Sale” signs already dot the lawns across new residential communities. And right next to the ubiquitous billboards from builders are fresh signs offering homeowners help to avoid foreclosure."

Amazing, the mortgage industry profits going up and down the real estate boom from the same sheeple. Can someone say, "Baaaah"?
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Foreclosures still rising

Mortgages were most likely to go into default in Sacramento, Riverside or San Joaquin counties. The likelihood was lowest in Marin, San Francisco and San Mateo counties.

Most homeowners don't lose their home, but about 40 percent of homeowners who found themselves in default last year lost their homes in the first quarter, up a year ago from 9 percent, DataQuick reported.

Trustee's Deeds recorded, or the actual loss of a home to foreclosure, totaled 11,033 during the first quarter, up 802 percent from 1,223 in the first quarter of 2006.

Oh, well, that's good...only 11,033. That can't affect much. So, if the median price of the homeowner that is in trouble is $331k, well that is only about $3,651,923,000. Don't worry, nothing to see here...remain calm, all is well.

If that trend continues for the next year, that is only 14.6 billion back to the lender. 14.6 Billion...hah! We scoff at you Mr. Billion with your capital B. No worries.