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Good News About the Sub-prime Mortgage Crisis In recent months, the national media has dwelled on the collapse of the subprime mortgage market and the surge of foreclosures. But there is another side to this story that should also be considered. Foreclosure Tsunami Continues in California The foreclosure tsunami in California continues unabated. More foreclosures were started in California during the second quarter of 2007 than any comparable period in over ten years. What has caused this tsumani? It has been caused by the “perfect storm” of depreciating home prices, anemic sales, re-setting adjustable rate loans, and the mortgage meltdown in the financing sector.

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