The Modesto Bee reports from Caalifornia. "Gov. Schwarzenegger proclaimed 'a very, very big victory for the people of California' this week in getting lenders to help homeowners avoid foreclosure, but the deal he announced apparently isn't new at all. The governor took credit Tuesday for negotiating an agreement with mortgage lenders Countrywide Financial, GMAC Financial Services, Litton Loan Servicing and HomEq Servicing to help keep subprime borrowers in their homes."

"Those four lenders, however, told The Bee on Wednesday that their lending policies haven't changed and the governor didn't get them to agree to anything new."

"'The governor's principles already are in alignment with what we already do,' said Larry B. Litton Jr., who heads Litton Loan Servicing. 'Nothing's substantially changed.'"

"Homeowners expecting new assistance from those four lenders may be disappointed, however, because their foreclosure procedures haven't changed. 'This is nothing new for us. We've always tried to help our borrowers,' said Kim Cohen, HomEq's spokeswoman."

"'We're already doing what he suggested,' GMAC spokesman Stephen Dupont said. 'No. Things really haven't changed.'"

The Sacramento Bee. "As California's housing slump punches through the state economy, it's leaving bruises on the state budget. Four months into the 2007-08 budget year, state revenue is $1.1 billion below what was forecast. The decline can be seen in all major revenue streams."

"While it's not clear how much the state has lost in the collapse of the overheated real estate market and the subprime mortgage crisis, finance officials say the fallout is having a substantial impact on California's treasury. Even a wealthy man like Gov. Arnold Schwarzenegger is worried about the high rate of foreclosures."

"For some, government efforts come too late. Erin O'Hagan, a former escrow assistant, said that in January she will be moving out of a Foothill Farms duplex she purchased nearly three years ago with her son."

"She and her daughter-in-law have lost their jobs, leaving the family unable to pay their adjustable-rate mortgage. Their payments jumped $1,000 a month when their interest rate was reset. 'I am a 50-year-old widow, my credit is totally trashed, and for the first time in a long time, I'm going to be a renter,' O'Hagan said."

"O'Hagan isn't the only homeowner affected by lax financing rules and high prices. DataQuick has reported a record 24,209 foreclosures in California in the third quarter of 2007, the most since the company began collecting data in 1998."

"Sacramento County is already getting $15 million less in property taxes this year after the assessor reduced taxes on 50,000 properties. County assistant assessor Kathleen Kelleher said the office may lower assessments on another 25,000 properties next year. 'We expected this,' she said."

The Mercury News. "Bay Area food banks have had a little less to be thankful for this year. Although many of the local charities are seeing a record need for basic food items, donations have been lagging. And food bank workers are nervous, with some calling this the worst season for hunger since the dot-com bust rocked the valley years ago."

"Michael Bute, a former printer and truck driver now living at InnVision's shelter, said the influx of needy residents could be blamed on too many folks counting on their homes for income."

"'Everyone is depending on the real estate to be a big boom, and it's a big bust,' said Bute, as he took a walk after a Thanksgiving meal at InnVision."

The Recordnet. "New home sales throughout California remain sluggish, a state home-builders trade group said Wednesday."

"A monthly sales report by the California Building Industry Association and Hanley Wood Market Intelligence showed that all new-home sales in September, including condominiums, were 45 percent below September 2006."

"The median base price of homes sold dropped by 12.1 percent from the same period last year, falling from $452,990 to $398,060, the report said."

"In San Joaquin County, sales fell by 77.1 percent from 328 in September 2006 to 75 this past September, the report said."

"'The problems relating to credit availability don't seem like they will be resolving themselves in the near future,' said Jonathan Dienhart, director of published research for Hanley Wood. 'Until we have stabilization in the broader market of real estate-backed securities, access to financing will remain restrictive for many potential homebuyers.'"

"Dienhart said consumers seem very wary about home purchasing in general."

"'Many would-be home buyers have taken themselves out of the market because they see it as too risky, and until this perception improves, we will continue to experience a degree of paralysis in the new and existing home markets,' he said."

"A total of 105 home-building permits were meted out last month countywide, the lowest level by far for any October so far this decade, according to the Construction Industry Research Board, which tracks the building sector in California."

"That was down from 188 in October 2006 and compares with the high for any October this decade of 638 in October 2002."

"Statewide, just 12.6 percent of all the homes sold could be afforded by a median-income family, up from 11.7 percent in the second quarter, the group said. California accounted for nine of the 10 least affordable metro areas in the country: Napa, Los Angeles, Salinas, Anaheim, San Luis Obispo, San Francisco, Santa Cruz, Merced and Santa Barbara."

The North County Times. "New-home sales dropped 67 percent in San Diego during September compared with the previous year, numbers reflected throughout the country as the real estate market continues to struggle, according to reports."

"But real estate analysts said they can take some comfort in the fact that the market is not getting much worse, even if it is not getting any better."

"'August was the worst month we had seen, so September wasn't better, but it was not greatly worse. So in a way, that's a positive result in these dark days of the housing market,' said Jonathan Dienhart, for Hanley Wood Market Intelligence."

"Home sales throughout the state fell 45 percent during September compared with the previous year, according to Hanley Wood's report."

"September home sales in San Diego also took a 26 percent dive when compared with August numbers. San Diego's market is slumping more severely than the state's and the nation's, in part, because a low inventory of housing and higher prices have contributed to a more volatile market, said Paul Tryon, CEO of San Diego's Building Industry Association."

"Perhaps even more significantly, consumers are wary of jumping into a slumping housing market. 'When you start to hear bad news, people who have extended themselves to invest in California in the past start to take a breather. Everyone wonders, 'How bad is it?' and 'How bad is it going to get?' Tryon said."

"Also, Dienhart said some Realtors are unwilling to slash prices on valuable coastal properties and would rather hold the homes until the market improves."

"A return of a healthy real estate market will be greatly dependent on the general state of the national economy, Dienhart said. 'If we've had this bad of a housing market with the economy doing relatively well, there's no telling how bad it can go if economic conditions worsen,' he said."

The Tribune. "Dawn Curnes is closing The Waggin’ Tail Cafe & Barkery, a boutique for pets, in San Luis Obispo next Friday."

"Curnes said earlier this month that she intended to stay in business at least long enough to get a boost from Christmas sales. But after getting advice from a business expert, she said, 'it just was not in the books to continue.'"

"'I’ve been losing money from March on,' said Curnes, who never accrued any pay for herself in the two years she’s been open. 'National predictions say retail will be very soft this Christmas, and there’s just no end in sight. Now I have to buy myself out of retail contracts and sell my equipment below market, just to get rid of it, so I anticipate losses around $35,000 to $50,000.'"

"Curnes said she believed her business closure may be one of many to come in the near future. 'I had such high hopes, but this is a real tough town,' she said. 'Small businesses are really taking a hit here, what with the economy, gas prices — it’s a perfect storm.'"

"John Rossetti, Curnes’ landlord and co-owner of the property, estimated that he has seen 50 percent more vacancies than last year in the commercial properties he oversees. The lag time to fill those spaces is about six months."

"'I’m getting this strange vibe and am starting to wonder, with the housing market and all the trade that’s attached to it, could it be we are having a recession?' Rossetti said."

The Union Tribune. "Nearly 50 sign-waving demonstrators chanted and marched outside the Countrywide Financial office on Frazee Road yesterday to protest the way the firm has handled soaring foreclosure rates in San Diego County."

"Leaders of the protest also questioned the importance of an agreement with lenders brokered this week by Gov. Arnold Schwarzenegger. 'Is this really a new commitment?' asked Orson Aguilar, associate director of Greenlining. 'It appears to be the same old commitment that hasn't been working. We're hopeful, but we're also very skeptical.'"

"As they marched along Frazee Road, protesters chanted 'Fix our loans, save our homes.' Some of the messages written on signs they carried said, 'Got Turkey? Countrywide home loans'; 'Keeping my home should not cost me an arm and a leg'; and 'Would you give your mom a subprime loan?'"

The Associated Press. "Some of the participants held handwritten posters with slogans such as 'Our lives are not adjustable,' and 'Mozilo, don't be a Grinch' -- a reference to Countrywide Chairman and CEO Angelo Mozilo."

"One of the protesters, Nanshi Ignacio, said she refinanced her home in San Diego earlier this year with a loan from Countrywide, but now she's desperate for the lender to change the terms of her loan before it resets in a few weeks."

"'I need help to get my loan fixed so that at least I can get a fixed rate and have peace of mind," said Ignacio. 'I tried to talk to (Countrywide) but they were saying they can't do anything because I haven't defaulted.'"

""At one point, the protesters walked up to the Countrywide office and slipped signs that read 'Got Turkey? Countrywide Home Loans' beneath the doors, which appeared locked."