The Los Angeles Times ran a story today about record new levels of home foreclosures in California. Year over year data for the second quarter between 2006 and 2007  shows a 799% increase in home foreclosures for the state - a stunning increase that impacted nearly 18,000 Californians. The article also notes that this jump eclipsed the previous record for foreclosures, set back in 1996. The LA Times mentions the strong regional variance in foreclosure rates between counties. Riverside, Contra Costa, Sacramento and most Central Valley counties all experienced record levels of foreclosure, while Los Angeles county was far from its previous record in 1996.

Perhaps most interesting are the reasons for the foreclosure record cited by DataQuik chief analyst: the ease with which borrowers accessed adjustable rate mortgage debt to become homeowners. DataQuik speculates that lax lending standards, and the temptation of introductory rates, which adjust significantly upward after a few years, are at the root of the foreclosure boom. For the whole article, click below:

Foreclosures soar in California
By David Streitfeld, Times Staff Writer

LOS ANGELES — A sagging real estate market and tighter lending standards are exacting a growing toll on Californians, forcing them from their homes in record numbers, figures released Tuesday show.

Foreclosures soared to 17,408 for the three months ended June 30, an increase of 799 percent from the same period last year. The current rate handily exceeds the previous foreclosure peak set in 1996, when the state was in the final throes of six-year slump.