The Chicago Tribune reports from Illinois. "Nearly 29,000 foreclosures were filed in the six-county Chicago region in 2006, a one-year jump of 36 percent and the highest level in at least eight years, according to a study. 'The popularity of these complicated and risky products, combined with loose mortgage underwriting standards, have driven foreclosures to record highs' in the region and the city, said Geoff Smith, research director for the non-profit Woodstock Institute."

"'Adjustable rate mortgages and no-interest mortgages have also gotten affluent people in trouble,' said Jeff Metcalf, CEO of Record Information Services. 'Interest rates were so low for so long,' Metcalf said. 'Something had to give.'"

From ABC News in Illinois. "On Aberdeen Street, on Chicago's South Side, there is a new and unwelcome neighbor as home foreclosures alter the neighborhoods. The growing number of abandoned homes with plywood nailed to the windows is prime evidence that the foreclosure crisis has moved in."

"'Here's a nice bungalow that's boarded up,' says Deborah Moore. 'So that's two on this block.'"

"Mark Hill is already feeling the impact at his South Side residence. In the year since he and his wife purchased their first home, five neighboring houses have gone into foreclosure. He said he wonders what the value of his house is, after a year in which five homes were boarded up right next to his home. 'We don't know what to do,' says Hill."

"In 2004 there were more than 13,000 foreclosures in the Chicago area. This year that number is expected to nearly double."

Reuters reports from Michigan. "In Troy, Michigan, Dorothy Guzek, a credit counselor since 1988, has also seen the changing face of foreclosure."

"Her clients, while predominantly poor and minorities, increasingly are neither. Nowadays, homeowners holding professional careers with six-figure salaries regularly drop by her office. More and more they come from upscale Michigan communities such as Independence and Clarkston."

"'Because of the financing that was possible, so many people bought the bigger house, the million-dollar house with the bowling alley or the tennis court outside,' says Guzek."

"In the last three months, the percentage of foreclosures for U.S. homes valued at more than $750,000 has climbed to 2.5 percent, the highest since early 2005, when RealtyTrac began tracking data."

"'Everyone's looking at subprime. The rock they aren't looking under are the adjustable rate mortgages and teaser rates and low money-down loans,' said Mark Kiesel, a portfolio manager for Pacific Investment Management Co. 'It's going to affect prime as well.'"

"Josh Rosner, managing director at investment research firm Graham Fisher & Co., says the growing numbers of foreclosures outside the subprime market is just the start. 'To define the problem as a subprime problem is short-sighted,' Rosner said. 'It's really seeing the tip of the iceberg as the iceberg.'"

"Increasingly, Guzek offers different advice than devising financial plans to save her clients' homes. 'If they can't afford it, sometimes the best thing for them is to walk away,' Guzek said."

The Enquirer from Ohio. "New Century Financial Corp. has agreed to halt all foreclosures in Ohio while state regulators and law enforcement officials determine if any of the loans violated predatory lending laws, Ohio Attorney General Marc Dann’s office said."

"'New Century has taken a good faith step by agreeing to let us review its documents before any further foreclosures are acted upon in Ohio,' Dann said in a statement. 'I want to make sure consumers are in a mortgage loan they can afford and not one agreed to under false pretenses.'"

"If bad business practices are discovered, New Century will be obligated to postpone action on that loan until the company makes corrective measures that are approved by the state, the attorney general’s office said. One option might be reworking the original loan to make it affordable for the consumer, it said."

The Star Tribune from Minnesota. "Subprime mortgage defaults will continue to hurt Residential Capital's profits this year, company executives told investors Wednesday."

"The Bloomington-based company, one of the country's largest mortgage lenders, plans to slash expenses and significantly reduce its subprime loan portfolio in reaction."

"ResCap earned $182 million in 2006, compared with a profit of $1 billion the previous year, as bad subprime mortgages played havoc with the company's balance sheet. For the fourth quarter, the company lost $651 million."

"Philip Kibel, an analyst with the credit rating agency Moody's Investors Service, said ResCap's troubles likely will persist into 2008 as the company cycles through bad subprime loans made in 2006."

"'Subprime is a delicate market right now,' Kibel said. 'ResCap still has a lot of exposure.'"

"'ResCap did not move quickly enough to reduce exposure in the face of this downturn,' CEO Bruce Paradis said. 'ResCap was too slow to reduce infrastructure and modify business processes in the face of new conditions.'"