The Press Enterprise reports from California. "Plenty of consumers are still finding themselves in financial hot water. And bankruptcy lawyers across Southern California reported an uptick in filings this past summer, and most expect the numbers to eventually climb back to previously high levels."

"In addition to higher minimum payments and out-of-control consumer spending, increasing foreclosures and mortgage defaults are expected to swell the number of bankruptcies. 'Variable-rate mortgages are just starting to bring people in. Over the next 18 months, it will continue to climb,' said (attorney) Stuart Price."

"'With the adjustable-rate mortgages adjusting in the next year, people's mortgage payments are going to go from $2,000 to $3,000 - those are big numbers,' said (attorney) Barry Borowitz."

"Bankruptcy attorney Leon Bayer said he spoke to a man last week who borrowed on his home a year ago using a 'negative amortization' loan. 'His house is worth $500,000, and the balance is about $525,000 because of the amortization,' Bayer said. 'He's a pensioner, retired from city of L.A. He's going to have to let the house go.'"

"Such exotic loans are part of the problem, compounded by homeowners who have sucked all the equity out of their homes."

"'People have been using the house as a piggybank,' Bayer said. 'When the real estate market stops accommodating them, there's no value increasing, they can't (refinance) again and there's no more equity in the house, and now they have $50,000 in credit card debt.'"

The Union Tribune. "Twenty people went to an auction of new model homes yesterday looking for a bargain. They were joined by about 80 'looky-loos.' In the end, the potential buyers wanted too much of a good thing, and the auctioneer's hammer never fell."

"Sixteen upscale homes in the Bressi Ranch development were advertised as up for auction at La Costa Resort and Spa. Buyers were willing to pay about $1 million for a home listed at $1.4 million or $1.5 million, and as little as $650,000 for houses priced near $1 million."

"None was accepted on-site, though auctioneer Mark Weitz told some of the high bidders that he would take their offers to the homeowners. 'The good news from the auction is that the investors did not lower the price and kept the value up for people who live there,' said real estate agent Kelly McLaughlin."

"Indeed, some of the looky-loos were local residents who wanted to see how much people would pay for homes in their neighborhood. They weren't happy with the offers."

"But Amanda Pion-Goureau, a Bressi Ranch resident, wasn't buoyed by the auction results, saying a house 'ultimately is only worth what someone is willing to pay for it.' She thought the prices being offered by the bidders 'reflect the true market value.'"

"'They're beautiful homes,' Ed Andrews of Long Beach said as he sized up the model homes with his wife. But he said he wouldn't pay more than two-thirds of the asking price."

"And a few people were simply sightseers. 'I just wanted to see what kind of a fool would buy these overpriced homes,' Bruce Azimi of Oceanside said."

"Weitz would not disclose the minimum bid for the houses. But the owners, a group of Los Angeles-area lawyers, apparently would need about 80 percent of the asking price in order to clear their own debt with the banks holding the mortgages."