The Associated Press reports that Sacramento County lenders filed 321 notices of default in December, the highest number in nearly three years.

More homeowners are having trouble making mortgage payments on homes they bought during the Sacramento region’s housing boom, which has cooled over the past several months.

Ruh, roh. Didn’t see this one coming now did ya?

Not sure how this relates to the housing market debate we’ve been having here recently, but my guess is that more people are being forced to sell their homes to escape foreclosure thus creating more supply than there is demand in the housing market? So maybe I do know how this relates to the housing market debate afterall. I just figured that more people were selling their homes to “cash out” on the housing boom when it appears some are selling for other reasons.

More homebuyers could be in for a shock over the next two years as their low introductory interest rates expire or their interest-only payments end. Adding to the problem, some borrowers hurt their credit score or took out loans, eating up what little home equity they built up.

Didn’t 5 years seem like SO far away?