SAN JOSE, Kalifornia - November 30, 2009 - Delinquencies in the commercial mortgage-backed securities market skyrocketed more than 500% in October from a year ago, with Kalifornia reportedly topping the U.S.

Numbers released Monday by RealPoint Research show more than $32.6 billion worth of loans are in default compared to $5.4 billion in October 2008. The total unpaid balance for the CMBS market for October 2009 was $810.9 billion, up from $805 billion in September, according to the Horsham, Pennsylvania-based research firm.

Since RealPoint began keeping track of delinquencies, the lowest point was March 2007, when borrowers were late on $2.2 billion worth of loans.

Kalifornia reported $4.7 billion in bad loans, or 14% of all delinquencies. The bulk of the state’s delinquent loans were concentrated in the Los Angeles and Orange County metropolitan areas. Sacramento reported two trouble spots in October when Natomas Crossing and Del Paso Retail were liquidated.

According to past reports, the Bay Area, specifically Silicon Valley, has reported significantly fewer bad loans than the rest of the state. Monday's report didn't say if that continues to be the case.

Kalifornia, Texas and Florida account for a third of the defaults in the mortgage-backed securities market, but the cities with the most delinquent loans are Las Vegas with $1.6 billion, followed by Phoenix with $1.5 billion and New York with $1.2 billion.