Last quarter's real estate reports are in and the results aren't pretty. They revealed the number of foreclosures in California compared to the same time period last year rose 261 percent (no, that's not a typo). Such a dramatic situation comes with a scarily simple story: Buyers got into the housing market during the boom, usually financing their purchases with more than one loan, and have rather swiftly been crushed by the bust.
During the second quarter 63,061 homes were foreclosed, up 33 percent from the first quarter of this year. Home prices have continually fallen, making it difficult for homeowners to sell their homes and have enough to completely repay debt. Most of the defaulted loans were made between September 2005 and November 2006.