Facing a foreclosure crisis

Housing experts painted a grim picture of Los Angeles' real-estate market Tuesday as City Councilman Richard Alarcon called for city, state and federal funds to help bail out city homeowners who can't pay their mortgages. Kerry Cavanaugh and Gregory J. Wilcox in the Daily News.

Warning that the region is embroiled in a foreclosure upheaval, Alarcon said he's also considering asking lawmakers to declare a state of emergency to direct state and federal money to counseling and loans for people about to lose their homes.

"We're in a crisis. We don't need bureaucrats who are going to sit on their thumbs and not get things done. Who do we go to in federal government to ask for emergency assistance to help solve this crisis?" Alarcon asked city housing officials Tuesday during an emergency hearing on foreclosures.

"It seems to me we'd better kick the federal government in the butt to get into action to help us solve the problem, and I don't think we're doing any kicking now."

The hearing came as economists were chewing on new default numbers that show the trend is worsening. Foreclosures hit a record level in California last month and officials said 1,074 homes were foreclosed on in Los Angeles County - up more than 600 percent from last year.