Subprime Resets Crushing Southern California Towns

In Southern California, North County Times reports on the tough times two towns are going through as a result of mortgage foreclosures flooding the area. Reportedly, one out of every 17 homes in in the northeast section of the city of Oceanside entered foreclosure last year. 30 miles northeast and across the Riverside County line in the city of Murrieta, one of every nine homes entered the foreclosure process last year.

• Many of the foreclosed families here said they were sent into foreclosure when their subprime loans graduated from the initial "teaser" rate -- a low interest rate generally offered for only the first two or three years of a 30-year mortgage -- to a higher adjustable interest rate.

For more, see Foreclosure mess emptying Oceanside neighborhoods, hurting those who've stayed.