As most of you have probably heard, there was a record number of defaults in the third quarter this year. I expect teh susequent quarters to be even worse. October and November are expected to have the largest number of ARM resets which will probably result in additional defaults beginning in December and January.

In Kern County there are currently over 4,000 properties in some state of foreclosure or pre-foreclosure. California is forecasted to have 191,000 foreclosures over the next two years according to a study release by the Senate Joint Economic Committee, so Kern County will get worse before it gets better.