Thw Wall Street Journal has this report on loan delinquencies. "Soaring housing prices and aggressive mortgage lending have saddled home buyers with ever greater levels of debt, and early signs are now emerging that more people are unable to keep up with their monthly mortgage payments. Analysts say that laxer lending standards on the part of mortgage lenders also resulted in higher debt loads, which some borrowers are now struggling to repay."

"Twenty-nine percent of borrowers who took out mortgages last year have no equity in their homes or owe more than their house in worth, according to a study. That compares with 10.6% of those who took out loans in 2004."

"An analysis by Bear Stearns found that delinquencies on loans originated in 2005 were in most cases far higher than on loans issued in previous years at the same point in their life cycle. 'The numbers are clearly worse,' says Gyan Sinha at Bear Stearns. The reason: Lenders were 'able to generate a lot more volume in the face of rising rates' by loosening lending standards, Mr. Sinha says. 'More aggressive lending was clearly taking place,' he says."

"Credit Suisse found that borrowers who took out adjustable-rate mortgages in 2005 were three times as likely to be delinquent on their payments after the first year as those who took out ARMs in 2003 and 2004. The study didn't include borrowers with option ARMs."

"Credit Suisse also found that borrowers who were delinquent were more likely to have lower credit scores and to have taken out piggyback mortgages, which combine a mortgage with a home-equity loan or line of credit. It also found that delinquency rates were shooting up in California."

"In another sign that some borrowers who stretched are now feeling pinched, a study by Lehman Brothers of subprime borrowers found that the increase in delinquencies is being driven by home buyers, rather than by people who are refinancing, and by those with little equity in their homes."

"Gail Burks, president of the Nevada Fair Housing Center, says borrowers are coming into her office who are having trouble making their payments as soon as a year or two after taking out a mortgage. 'It's more of the newer, exotic [mortgages] where the payment has changed and they are now pretty much priced out of the loan,' she says."

A Fed president chimes in. "Products such as adjustable rate and no-money-down mortgages have helped boost U.S. homeownership to record levels but have increased risks by raising some buyers' leverage, Chicago Federal Reserve President Michael Moskow said on Thursday. 'With less equity, people have less of a cushion to withstand adverse shocks to home prices or interest rates,' Moskow said."

"'Some people will soon be faced with these (adjustable rate) loans re-pricing under less favorable conditions,' Moskow said. Many believe that U.S. home prices have little room for additional growth and are more likely to fall than to rise further, especially on the East and West Coasts and in some cities in the South and Southwest, he said."

A television report from California. "Mechelle Sanders is a foreclosure counselor. Today she's following up on as many as 14 leads in the Stockton area. In many cases, Sanders says foreclosure victims are former Bay Area residents who underestimated the high cost of commuting. 'They commute, but with the prices being high in gas, they're going back because it's not making the difference,' said Sanders."

"The Westin Ranch development was the object of desire for Bay Area bargain hunters three years ago. But real estate agent Cynthia Carter says the number of homes here up for sale has quadrupled since last year. 'The commute you can do for about a year,' said Carter, 'and then it becomes really hard on the body physically for people.'"

"In April of last year there were 935 homes on the market in the bedroom communities of Stockton, Tracy, Lathrop and Manteca. This April the number skyrocketed to almost 3,500, a 270% increase."

And ABC has this video clip on ARM foreclosures in Texas and elsewhere.