California, a hotbed of real estate speculation, is facing an economic collapse that could leave it in bankruptcy court.
The state’s largest county is already dealing with an influx of new buyers and is bracing for a wave of foreclosures in the coming months.
And as the housing market in the state continues to heat up, there are more foreclosing on homes, causing the cost of living to soar, and the price of homes to skyrocket, too.
The Associated Press has the story, citing the state Division of Bankruptcy and Insolvency Services.
The bank is expected to file for bankruptcy in July, and its bankruptcy filing could cost California $7.5 billion.
That would be the largest federal default for the state, with an estimated $3.5 trillion in outstanding debts.
The state’s fiscal woes have also hit California’s real estate markets hard, as well.
The foreclosure rate has more than doubled in the past five years, and home sales are down.
The county in question is Ventura County in the western part of California.
The population is just under 4 million.