Article: Foreclosure activity hits highest level in 8 years in state: BUT DEFAULT NOTICE RISE NOT SEEN AS THREAT TO BAY AREA MARKET.

Byline: Sue McAllister

Jan. 25--Beset by a statewide slowdown in home price appreciation and rising interest rates, more California homeowners fell behind in paying their mortgages last quarter than at any time since 1998, a real estate information firm said Thursday.

A total of 37,273 homeowners statewide received "notices of default" from their lenders in the October-to-December period last year, according to DataQuick Information Services, which gathered the information from public records. That's up 37 percent compared with the previous quarter, and up 145 percent from the fourth quarter of 2005.

In Santa Clara County, 874 owners got ...

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