The Contra Costa Times reports from California. "For some, foreclosed homes may be the embodiment of broken dreams, but for others they can be a sign of hope. Rande and Tracy Ross, a married couple from Stockton, came on the tour to look at possible investment properties, mainly to rent out. 'It makes you sad. So many people got into these bad loans because they listened to their agents or mortgage brokers. They thought they were experts,' Tracy said."

"The Rosses paid more than $400,000 for their home in 2005, and were going to look at foreclosures in their own neighborhood, priced less than $300,000."

"'On one hand, you say, 'Oh, my God!' but on the other hand, this could be a good market for buying,' she said."

"Greg Paquin, president of the Gregory Group, said that these foreclosure tours are giving 'exposure' to homes that may not otherwise make it to the general public. 'Many of these bank-owned homes can be purchased for less than the replacement costs,' he said."

"Foreclosed homes are selling about 30 percent less than original asking price in the Tri-Valley and 35 percent lower in Fremont and Newark."

"John Case, an associate broker in Brentwood said that the tour covers most of East Contra Costa County's communities including Antioch, Brentwood, Discovery Bay, Oakley and Pittsburg. 'The overwhelming interest is in Brentwood, probably because it has taken the biggest hit in price,' he said."

"East County has been among the state's hardest hit areas in the subprime mortgage crisis. Of the 556 homes on the market in Brentwood in February, 181 were bank-owned, according to statistics provided by the city and gathered from the DataQuick."

"In Antioch the situation is worse, with 503 of the 1,184 homes on the market bank-owned, and 69.26 percent categorized as distressed."

"With more than half the homes (56.65 percent) on the Brentwood market in February classified as distressed the city is hosting a free workshop on Saturday to educate homeowners on the foreclosure process and to connect them with resources intended to help."

"'We have a lot of people that do not seek the outside help because of fear, because of embarrassment, and they could miss a good opportunity to still continue to be a homeowner,' said Elaine Brooks-Cox of Pittsburg's Pacific Community Services."

The Santa Cruz Sentinel. "Fewer people are fleeing the once prohibitively expensive coastal reaches of Northern California, according to U.S. Census Bureau numbers. Santa Cruz County was among a number of greater San Francisco Bay Area counties that saw more U.S. residents staying put last year than any time since 2001."

"For an explanation, observers say look no further than slumping home sales and slipping economic opportunity. 'For people to leave the most desirable areas, there has to be motivation to go, like jobs and housing,' said Jim Chubb, a loan broker at Pacific Inland Finance in Soquel. 'With the economy shrinking, that hasn't happened.'"

"'As the housing market has tanked, people aren't so sure what they want to do,' confirmed John Weeks, director of the International Population Center at San Diego State University. 'They're not going to make precipitous decisions about new housing.'"

"The draw of cheaper real estate inland is no longer an attractive investment as housing markets have plunged in places like Salinas and the Central Valley."

"'People are saying we don't want to buy there. Others paid four [hundred thousand] and it's now worth three,' said Chubb."

The Fresno Bee. "The Merced-based holding company for County Bank anticipates a big loss for 2007 -- caused by falling real estate values in the central San Joaquin Valley."

"While the bank's most recently reported problems have arisen mainly in the last quarter of 2007, the August foreclosure on an $11.7 million loan for a failed condominium construction project in the Sacramento suburb of Rocklin was an early sign of problems, Morford said Joe Morford, banking analyst with RBC Capital Markets in San Francisco."

"'Through 2007, management indicated that was an isolated issue,' he said. 'Now we see there's much more deterioration across the portfolio.'"

The Tribune. "Paso Robles will hold off on filling city jobs and defer some financial transfers as part of a belt-tightening effort in a challenging economy. Paso Robles’ economic picture is being influenced by fewer homes being built, the national mortgage crunch and rising gas prices, according to city staff."

"So far this year, the city has had three housing starts compared to 46 last year and 241 in 2006. For 2004, at the peak of the building boom, the city saw 512 housing starts."

The Desert Sun. "The abandoned, foreclosed home on Caribe Street looked OK from the outside. Inside, it was obvious that squatters - homeless people who stay the night in vacant houses - had invaded. It's a scene that's starting to crop up in neighborhoods across the valley - a byproduct of skyrocketing foreclosures."

"Indio, with nearly 1,500 homes in foreclosure in the city's limits, is leading valley cities in taking a stand. A new law goes into effect April 4 targeting abandoned homes with overgrown landscaping, stagnant pools and other eyesores that scream 'empty' to squatters."

"In Desert Hot Springs, where abandoned homes also are being used for unsupervised parties by youths, a similar ordinance was approved Tuesday by its City Council. In Palm Springs, the subject of abandoned buildings including homes was discussed at a recent City Council study session."

"Homeowners are walking away from their homes without notifying their lenders, said Indio police Lt. Forest Meadows said."

"And banks in some cases won't take responsibility for properties until more than six months into the foreclosure process, he said."

"Stephanie Grant, assistant VP of public relations for Wells Fargo, e-mailed the following statement: 'We suffer significant financial losses whenever foreclosure becomes necessary, and neighborhoods may suffer from vacant homes. Wells Fargo has a strong business interest in selling a real estate owned house as quickly as possible.'"

"Indio Councilman Mike Wilson said he's relieved to have the new ordinance in place. He had a squatter staying in a foreclosed home across the street and saw what it did to his Sonora Wells neighborhood."

"'They were coming late at night and leaving early in the morning,' Wilson said. 'If we're maintaining the front yard and pools and Jacuzzis it takes away the squatter or transient issue.'"

From ABC 12.com. "A family of accused con artists is suspected of leading an operation that processed thousands of home loans in California during the past several years in a widespread refinancing scam."

"Prosecutors say the operation was led by 25-year-old Eric Pony. 'When someone like Pony, as alleged, lies to them and steals money from them...he's gonna go to jail. We'll do our best to make sure he'll spend as much time there as possible,' said Larry Roberts, the deputy district attorney in San Bernardino County."

"When Traclyn Sharrit looked to refinance her mortgage, she thought she found a solution to save money on her San Bernardino, California home. She soon realized she'd been sold a bill of goods she never bargained for. Her mortgage bill is now beyond her family's means."

"'I was paying 2,000-something dollars a month...People like Eric Pony are not only robbing my American dream, they're destabilizing the entire housing and financial market,' accused Sharrit."

The Associated Press. "The combination of sinking home prices and tighter lending standards has been a major aggravation for Ron Broussard, a 38-year-old sales representative for a home builder."

"Broussard took advantage of soaring Southern California property prices three years ago to refinance a loan on a house he had owned since the late 1990s. Today he's still stuck with a $720,000 mortgage and has been renting it out since moving with his family to Texas a year ago."

"Once appraised for $1.1 million, Broussard's lender now says it's worth about $300,000 less. He does not yet owe more than the property is worth, but Broussard worries that is a possibility. 'The way the market's going, you know, who knows?' he said."

"Broussard has found little sympathy from his lender, Countrywide Financial Corp. While Broussard accepts responsibility for taking out a mortgage whose monthly payments are due to skyrocket once the unpaid principal exceeds the home's value by 15 percent, he feels betrayed by the lender's unwillingness to negotiate better terms."

The Daily Breeze. "Warren Snyder, who co-owns Carriage Realty & American Broker Loans in Torrance, has already seen his business slow because of the weak housing market. It may come closer to a halt with tighter lending standards. And Snyder says he's OK with that."

"'If they're taking steps to get back to the old rules and regulations, I think it's going to be very, very good,' said Snyder, a longtime critic of loosened mortgage requirements that have contributed to the nation's current credit crunch. 'These steps that they are taking are not enough, but they're in the right direction.'"

"Home buyers are adjusting to the new reality, Realtor Adolph James said."

"'One of the things I've noticed is most of the people interested in purchasing property in the South Bay are bringing more money than they had in the past,' said James in Manhattan Beach. 'You're seeing fewer people coming with only 5 percent or 10 percent (as a down payment). The psyche is you can't come in with a shoestring because that's how people got in trouble.'"

The LA Times. "The tumbling housing market has prompted county tax officials around Southern California to begin reducing the assessed value of many houses, resulting in lower tax bills for homeowners."

"The values of more than 41,000 homes have been reassessed downward so far in Los Angeles County. Other counties have barely begun the reassessment process but promise to get the job done before property tax bills are mailed in October."

"In Riverside County, the assessor's office has been fielding at least 100 calls a day from people concerned about property values and wanting to know when and how theirs will be reassessed, said county Assessor Larry Ward."

"'It is a huge job,' said Orange County Assessor Webster J. Guillory. 'We will do it with existing staff and lots of overtime paid for weekend work and 10-hour days. We don't have nearly enough staff to do this level of work.'"

"Around the Southland, officials are automatically reevaluating homes purchased in recent years, especially at the height of the housing bubble from 2004 to 2007. Thousands of homeowners have also filed informal requests."

"Ventura County Supervisor Peter Foy said: 'We're not at the bottom yet. We could see another reduction in values. It's not a good situation. It'd be nice if people felt their investment in their home was still what it used to be.'"

The LA Daily News. "Due to significant drops in Los Angeles County home values, Assessor Rick Auerbach said Thursday that he's in the process of reassessing the values of 310,000 homes."

"Auerbach said not all of the revaluations have come at the request of homeowners. Market conditions - and the growing likelihood that some properties are overassessed - have spurred him to review recent sales."

"'We are basically looking at all single-family homes and condos that have a purchase date, whether purchased new or resale, between July 1, 2004, and June 30, 2007, because those are the ones we think might deserve a reassessment below their Proposition 13 values,' Auerbach said."

"The 41,000 reviews were from that July 1, 2004-June 30, 2007, period, he said. Auerbach estimates the reassessments will reduce the county's assessment roll by $5.6 billion."

"The reassessment comes after the median price of a home in the county peaked in February 2007 at $616,230 and has since dropped 23.8percent, to $469,420, said Jack Kyser, chief economist for the Los Angeles County Economic Development Corp."

"'We expect prices to continue to slide down, and a lot of that downward pressure will come from foreclosed homes,' Kyser said. 'The assessor will continue to have to do this.'"