KB HomesThe CompanyKB Home (NYSE: KBH) is a United States-based home improvement company, founded in 1957 as Kaufman & Broad. It was the first company to list on the NYSE as a homebuilder and is a Fortune 500 company. Its headquarters are in Los Angeles, California. In fiscal 2005, the company delivered homes to 37,140 families in the United States and France and had revenue of more than $9 billion. KB Home is a lending partner and offers comprehensive mortgage services through Countrywide Home LoansProblems in the face of company default in the subprime sector. Sales Down in February After No Earnings in January 1.5 Million Will Lose Their Homes to Foreclosure! According to the National Association of Realtors, who often trumpet the fact that average home prices in the United States have not fallen since the Great Depression, said yesterday for the first time that they expect prices to do just that. In February the NAR was still calling for a 1.9% increase, but now says prices will likely fall 0.7% nationwide from 2006 levels. That means less eligible buyers, and an increase in foreclosures is adding to home inventory in already overcrowded markets. The report states that the "fallout from the subprime mortgage debacle" will likely delay the housing market recovery until 2008. The separately unfair press, with its misleading information, is increasing market stress which is raising the real possibility of regulatory responses and overzealous legislatures. interest rateIncreasing the interest rate means less demand for new homes. Some experts believe it would be better to rent for the next five years than to buy. Rising defaults by subprime borrowers have forced more than two dozen lenders out of business in recent months and raised the prospect of a credit crunch that could drive borrowers out of business. some potential buyers. A wave of foreclosures could also hurt new homebuilders, forcing them to lower prices to compete with existing properties. Negative Posting Recent negative news about KB Homes' high foreclosure rate may also worry them more than ever, as buyers are more cautious about purchasing new homes. Here is one of the reports from 12/28/2008; Outstanding Report: KB Home is a Major Factor in High Foreclosures: 91%, Obtained Loans from KB's Mortgage Company... "Colorado's home foreclosure rate is the highest in the nation this time of year and the Weld County at the highest levels in Colorado, real estate experts say: Stagnant prices, too many homes for sale, 100% loans with rising interest rates, mortgage fraud, unregulated brokers, fake appraisals and buyers who go above and beyond their possibilities.