DQNews - "Record California Foreclosure Activity" (10-26-07)

"Lenders started formal foreclosure proceedings on a record number of California homeowners last quarter, the result of declining home prices, sluggish sales and subprime mortgage distress, a real estate information service reported. A total of 72,571 Notices of Default (NoDs) were filed during the July-to-September period, up 34.5 percent from 53,943 during the previous quarter, and up 166.6 percent from 27,218 in third-quarter 2006, according to DataQuick Information Systems of La Jolla."

NAHB - "Housing Economists Expect Market Turnaround To Begin In 2008" (10-26-07)

"Though there appears to be no let-up to the current housing downswing, economists participating in the National Association of Home Builders Fall Construction Forecast Conference on Oct. 24 said they expect the industry to bottom out and to start turning around in 2008. Acknowledging that there is definitely downward momentum in the market at this time, with starts, sales, prices and permits off, and problems in the subprime and Alt-A mortgage markets, NAHB Chief Economist David Seiders said that housing should nevertheless begin a modest recovery next year."

CBIA - "Housing Production Continues Decline in California, CBIA Announces" (10-26-07)

"Home production in California continued to decline in September as homebuilders continued to sell off existing inventory and looked for signs of a balancing market, the California Building Industry Association reported today."

CNN - "Countrywide: $1.2B loss now, but profit soon" (10-26-07)

"Countrywide Financial, the nation's leading mortgage lender, reported a staggering $1.2 billion third-quarter loss Friday that was much larger than Wall Street expected, but predicted it would quickly return to profitability. Countrywide's net loss came to $2.85 a share, or $2.12 a share excluding certain items. Analysts surveyed by earnings tracker Thomson First Call had forecast a loss of $1.28 a share, compared to the net income of $648 million, or $1.03 a share, it reported a year earlier."

Times Online - "Henry Paulson presses for aid to sub-prime lenders" (10-26-07)

"Henry Paulson, the US Treasury Secretary, is seeking to persuade the White House to offer financial compensation to American mortgage lenders that try to help troubled homeowners by renegotiating the terms of their loans. The Times has learnt that Mr Paulson is lobbying President Bush to provide funds so that mortgage lenders can reduce the loss that they would incur from either reducing the rate of an adjustable home loan or extending the life of the mortgage to make it cheaper for the property owner."

New York Post - "STILL FALLING" (10-26-07)

"Ailing mortgage giant Countrywide Financial is set to report shockingly dismal third-quarter results today that could send the broader stock market down and raise fears that the global credit crunch is far from over. Shares of Countrywide, which have plummeted 67 percent this year, dropped 5.50 percent yesterday on investor fears that the company will report much weaker than expected results."

CNN - "For sale: 2 million empty homes" (10-26-07)

"The number of vacant homes for sale rose in the third quarter, according to the latest government reading that casts new harsh light on the weakness of the housing market. The Census Bureau report puts the number of vacant homes for sale at 2.07 million in the period, up about 2 percent from the second quarter, and 7 percent above year ago levels."

Real Estate Journal - "When Will the Housing Market Finally Hit the Bottom?" (10-26-07)

"Builders have almost no confidence. The home builders' index fell to a record low in October (the index dates back to 1985). New construction on single-family homes has plunged 31% in the past year, but still the inventory of new homes on the market, after adjusting for cancellations, is at the highest level since the early 1990s. As if the fundamental sickness in the housing market weren't enough, a secondary infection has developed. The credit crisis in the mortgage market that erupted in the summer has left huge numbers of potential buyers without any access to mortgages. The subprime sector has essentially died, with the newly reinvigorated Federal Housing Administration able to replace only a tiny segment of what was once a huge market of home buyers."

Real Estate Journal - "Home Sellers: Don't 'Scare Away' Buyers This Halloween" (10-26-07)

"A broker for Prudential Douglas Elliman, Ms. Teplitzky mostly sells homes in Manhattan's high-end market. This particular apartment had been listed since the end of August, and she had convinced her Upper East Side clients to clear out excess furniture in the 1,200-square-foot, two-bedroom and two-bathroom unit to make it more appealing to buyers. When she walked in, Ms. Teplitzky expected to see less clutter. Instead she found fake witches, cadavers and pumpkins on the floor, as well as "things that make noise and surprise you," scattered around, she says. Every room in the apartment -- including the kitchen and bathrooms -- oozed Halloween decorations."