Foreclosures Double Previous Calif. Record

Subprime collapse saw 31,676 in default in last quarter of 2007
By Sam Gale Rosen,  Newser Staff
Posted Jan 23, 2008 6:47 PM CST
A home listed as being in foreclosure on the California Housing and Urban Development website is seen in Huntington Beach, Calif., Wednesday, Aug. 15, 2007. (AP Photo/Reed Saxon)   (Associated Press)
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(Newser) – Foreclosures in California hit a new high in the final quarter of 2007, more than doubling the previous record. Nearly 32,000 foreclosures in the state in the year's final three months smashed the existing high set in 1996. Experts say that the rise in foreclosures stems at least partially from the sub-prime loan collapse, reports the Los Angeles Times.

What's more, the previous record spike in foreclosures occurred in 1996, as an economic recession was winding down. This has experts seriously worried about what will happen in this case, because the recession is, many analysts believe, only just beginning. "If there is a recession, these numbers are going to get much bigger," one tells the San Jose Mercury News.