I believe that this is still just the start or the first quarter of the losses in the REAL ESTATE PROBLEM. I am sure that the Real Estate people meant well by wanting to put people into homes, After all that was and is the "American Dream" to own your own piece of property!! I know it was my dream to own my own piece of property. It is the only way to go, owning your own place.
Looking at this report is basically the start of the losses, I believe that there will be some Prominent Real Estate Companies that will Fold before to long. Ones that will not be Saved by the Massive Banks, like "Bank of America".
Watch and see, you will be able to purchase a 2500 sq. ft. home again in California for just $100,000 in no time, just wait it will happen, right here in California.
BS Ranch
This story is taken from Sacbee / Breaking News.
Defaults, foreclosures skyrocket in Sacramento, state
By Dale Kasler - dkasler@sacbee.com
Published 10:34 am PST Tuesday, January 22, 2008
Foreclosures and defaults soared to stratospheric levels in Sacramento and the rest of the state last year.
As the Federal Reserve made an emergency interest rate cut of three-quarters of a point Tuesday in an effort to stop a panic in global stock markets, new statistics from DataQuick Information Systems showed that California's real estate problems continue to deepen.
Notices of default - a sign that homeowners are falling behind on payments and are in danger of foreclosure - jumped 114 percent in the fourth quarter in California to 81,550. That's the highest level ever recorded by DataQuick, which has been tallying defaults since 1992.
Actual foreclosures statewide rose fivefold in the quarter, to 31,676, DataQuick said.
The results were dismal in Sacramento as well. Notices of default in the eight-county Sacramento region, stretching from Amador to Nevada counties, were up 106 percent in the quarter.
For all of 2007, foreclosures in greater Sacramento were up an astonishing 496 percent, to 10,049, DataQuick said.
The latest numbers underscore the enormous challenge facing the state and national economy. The Fed's rate cut may not stave off a recession, said Scott Anderson, senior economist at Wells Fargo & Co.
"It could get ugly very quickly and this is what the Fed is responding to," he said. The cut "is not going to be a panacea" but could help bring the economy out of a recession more quickly, he said.
He said there's at least a 50 percent chance of a recession this year.
At least one Sacramento real estate agent welcomed the Fed's move.
"When I heard that, I thought, 'Right on, good,"' said agent Warren Adams, who specializes in selling properties that have been foreclosed. "That'll get more buyers out there to buy."
Adams said he believes prices might continue to decline although "I think by far the worst is behind us." He acknowledged that his is a minority view, and most experts believe that prices will continue to drop substantially.
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