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October 21, 2009 (LPAC)--The new figures reported in today's Sacramento Bee show that foreclosures in the capital-area of Depression-wracked California surged in the 3rd Quarter, up 12.5 percent from the previous quarter, as 5,004 households in the Sacramento area were forced to leave their homes. The jump is partly due to increased joblessness, but also due to the furlough policy of fascist Gov. Schwarzenegger, under which many state employees can no longer afford to make mortgage payments, due to losing 3-days of income each month.

While an effort was made to present some "good news", by saying that there were fewer defaults in the quarter -- defaults precede foreclosure -- the President of MDA DataQuick, which did the study cited in the Bee, acknowledged that this was due to fear of lenders that "flooding the market with cheap foreclosures in this economic environment may not be in their best interest." In fact, while 87 percent of the homes foreclosed from February 2008 through July 2009 have been resold, they were purchased at significantly reduced prices. Lenders fearing a further ratcheting down of prices if foreclosures continue to increase in the next quarter, prefer to allow homeowners to remain in their homes, even in default.

Since January 2007, 460,757 households have been foreclosed in California, with 46,907 of those occurring in the capital area of counties in the Sacramento area.

In a related development, recent issues of Figaro and L'Express magazines in France have pages of ads offering foreclosed homes in the U.S. to French would-be purchasers at "rock-bottom" prices, enabling them to take advantage of the collapse of the dollar, to get special cheap deals!