Recordnet.com - "Mortgage defaults on the rise, but what's next?" (4-1-07)

"About one in 10 homes on the market now is either a bank-owned foreclosure property or a short-sale - a house forced on the market by the lender because the payments are late. Over the past year, the markets for both foreclosures and trustee sales have tripled, www.sjforeclosures.com reported. The increase has been steady with a surge in recent months."

Sign On San Diego - "Industry tightens standards on 'no proof' loans" (4-1-07)

"Designer mortgage loans that don't require borrowers to prove how much money they earn or make downpayments are getting much of the blame for the wave of defaults racking the subprime mortgage industry. Many lenders are tightening qualifications for such 'stated income loans' and other financing that requires little or no documentation."

Inside Bay Area - "East Bay hit hard by slump in realty" (4-1-07)

"The East Bay has become one of the worst-hit epicenters jolted by the housing slump, and the aftermath is likely to slow the region's surging economy and job market, according to a report released today. Some of the sharpest spikes in home mortgage defaults in California have surfaced in the East Bay, a study by the University of California, Los Angeles, Anderson Forecast disclosed. The Anderson Forecast used data supplied by DataQuick to produce the downbeat assessment. "

Yahoo! - "Subprime woes to drag '07 market" (4-1-07)

"More than two dozen subprime lenders have shut down in recent months and others are scrambling to stay in business as a spike in defaults caused by borrowers unable to make payments has rocked the mortgage industry. Now, as lenders tighten credit standards, the housing market will likely see further declines in price and output, senior economist David Shulman wrote in the quarterly Anderson Report to be released Monday by the University of California, Los Angeles."

LA Times - "Values drop, so can taxes" (4-1-07)

"Home prices are dropping in parts of Southern California and, for owners who bought at the market's peak, that could translate to lower property tax bills. Because property taxes are based on 1% of the sales price of a home, a dip in the market can shave more than a few dollars off the assessed value of a house and the biannual payment — the second of which must be paid by April 10 to avoid penalties. Reductions are permitted by Proposition 8 — an amendment to tax-limiting Proposition 13 — that allows county assessors to reduce property taxes when market values fall. To get one, homeowners must be able to show their residence is worth less than its purchase price."