Foreclosure Update

June, 2007

The following article was sent to me by an investor friend of mine who has been very active in the market over the past several years. When Dan sent me his article I asked for a picture to run with the article, and the picture you see is the one Dan sent. I think he rides the motorcycle to burn off the frustration he experiences working with lender/asset managers all day - I may try it myself.

Of particular interest in the article are the following statistics:

1. In Sacramento County over 40% of the homes available for sale are vacant. That's 4 of every 10!

2. Only 10% of the bank owned properties on the market are in pending sale. This is a clear indication that the mortgage industry is behind the curve when it comes to understanding the market.

The rate of mortgage delinquencies is showing no sign of slowing. What is unclear, is when (or maybe if) the mortgage industry is going to respond to a mortgage default problem that is reaching crisis levels in many Central Valley communities.