Article: Stunning Jump in California Foreclosures

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/01/22/BUTEUJN7I.DTL&tsp=1

"Foreclosure activity is closely tied to a decline in home values," DataQuick President Marshall Prentice said in a statement. "With today's depreciation, an increasing number of homeowners find themselves owing more on a property than its market value, setting the stage for default if there is mortgage payment shock, a job loss or the owner needs to move."

Once these foreclosed properties hit the lenders' books, the clock starts on getting them off those books. The bank couldn't care less about destroying neighborhood comps--they only care about minimizing losses.

So what's going to happen to property values once this enormous influx of bargain properties comes onto market and adds to an already overwhelming supply of homes?

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*splat!*



And what's going to happen to already struggling owners who suddenly find themselves underwater, and can't refinance to a lower payment because creative lending isn't available and they owe way more than their house is worth?

More foreclosures.

Folks, it's going to be a nasty, nasty ride.

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