Spike in Number of Californians Entering Foreclosure

Every time the toms-toms are beaten to declare that the US economy is wonderful again, an unwelcome guest appears. This week's entrant comes from the Golden State. According to an LA Times report, the number of Californians receiving a notice of default -- the first step in the foreclosure process -- increased roughly 25% over the previous quarter. That's not good news, as filings had reached a three-year low earlier this year.

Beyond the percentages, the actual number of foreclosures is daunting. Over 70,000 notices were sent out to delinquent mortgage holders in the past three months. Some home owners have more than one mortgage, which would suggest they are profoundly underwater.

At some point, the country (not only politicians) will have to wake up and smell this unpleasant brand of coffee. The US economy, with the housing market at its core, cannot advance until the foreclosure catastrophe is honestly faced. That event has not yet happened, and few have possessed the will to address the housing disaster in a sensible way. It's a financial time bomb that keeps on ticking.