Finance problem.

Finance Problem: Foreclosure activity in California and other Western housing markets is on the increase in part because high-risk adjustable-rate loans are beginning to reset to fully amortized payment schedules, the Los Angeles Daily News reported. During the year's first three months, all types of foreclosure activity in California jumped an annual 34 percent, to 28,550 incidents, according to Sacramento-based property tracker Foreclosures.com. Notices of defaults, one of three indicators tracked and the first step in the foreclosure process, increased 37 percent, to 20,515 incidents. And the number of real estate-owned properties, the final step in the process and notification that there is a new owner, increased 27 percent, to 1,411.