By Elliott D. Petty

The number of mortgage default notices sent to California homeowners last quarter rose to its highest in nearly 10 years as home prices stagnated and rates on adjustable loans pushed higher, a report released on Monday by DataQuick Information Systems, a real estate information service.

Many analysts say a surge of foreclosures is in the making and that it will weigh an already sluggish housing market and may slow the broader state economy.

As a result, many families are in danger of losing their homes in a shaky but tight housing market. 

But flying just below the fringes of this recurring media story about major financial companies going belly up due to their poor business decisions to approve loans for people who cannot afford them is another equally important housing crisis.

The condo-conversion craze, which is displacing thousands of low and moderate-income families on a daily basis across the state. 

In case you've been on sabbatical from the real world, here's how it works, real estate investors purchase existing apartment buildings, announce their ownership alongside their plan to convert the rental units into condominium units with an eviction notice.