Foreclosure Activity Up Sharply in California

Morning Coffee:

Sacrament's News 10 gives us the inside scoop:

California continues to lead the nation in foreclosure activity with a nearly 300 percent rise last month from January 2006.

and

In a prepared statement, foreclosures.com president Alexis McGee laid much of the blame for the spike in foreclosure activity on creative financing which allowed buyers to purchase homes beyond their means.

It is exactly this kind of news that makes Bernanke's Policy Report to Congress yesterday sound trite. He said:

"Despite the ongoing adjustments in the housing sector, overall economic prospects for households remain good. Household finances appear generally solid, and delinquency rates on most types of consumer loans and residential mortgages remain low."

View from So Cal RE Bubble Crash: "The view that the FED chairman holds about the current state of delinquencies may prove to be unfounded and out-of-date at least for California."

And, last month, from DQ News: California Foreclosure Activity Jumps Again: The number of mortgage default notices filed against California homeowners jumped last quarter to the highest level in more than eight years. . . full story

Also: Arizona Ranks 5th for January Foreclosures, California 14th