More mortgage default and foreclosure news...
* Foreclosures.com reports that 168,829 homes entered the foreclosure process during Q1 2007. That's a 103% increase from 83,154 homes a year earlier.
* A new Lehman Brothers report suggests 20% to 30% of borrowers who took out subprime ARMs last year will be unable to refinance when the artificially low teaser period ends. The biggest problem? Lenders are cutting back on the loan-to-value ratios they'll lend at. Lehman believes 7% to 15% of the 2005 crop of borrowers will also have trouble refi-ing into a new mortgage.
* Last but not least, Dataquick is reporting that 46,760 notices of default were sent to California homeowners in Q1. That was up 148% year-over-year to the highest level in a decade.
Get used to these kinds of headlines -- we're going to be reading a lot of 'em for some time to come.