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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-K**

**[X]      ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT      OF      1934**

**[        ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND      EXCHANGE ACT OF 1934**

|   | Delaware                                                                                    |   | 20-0842986                                                         |   |
|--------|---------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|
|   | (State                or other jurisdiction ofincorporation                or organization) |   | (I.R.S.                Employer Identification                No.) |   |

|   | o                Yes |   | x No |
|--------|----------------------|--------|-----------|

|   | o                Yes |   | x                No |
|--------|----------------------|--------|---------------------|

|   | x                Yes |   | o                No |
|--------|----------------------|--------|---------------------|

| Large                accelerated filer o | Accelerated                filer o |  Non-accelerated                filer x |
|------------------------------------------|------------------------------------|----------------------------------------------|

**DOCUMENTS      INCORPORATED BY      REFERENCE**

**PART        I**

**Item        1. Business. **

**Item        1A. Risk Factors.**

**Item        1B. Unresolved Staff Comments.**

**Item        2. Properties.**

**Item        3. Legal Proceedings. **

**Item        4. Submission of Matters to a Vote of Security Holders.**

**PART        II**

**Item        5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer        Purchases of Equity Securities.**

**Item        6. Selected Financial Data.**

**Item        7. Management’s Discussion and Analysis of Financial Condition and Results of        Operation.**

**Item        7A. Quantitative and Qualitative Disclosures About Market        Risk.**

**Item        8. Financial Statements and Supplementary Data.**

**Item        9. Changes in and Disagreements With Accountants on Accounting and Financial        Disclosure.**

**Item        9A. Controls and Procedures.**

**Item        9A(T). Controls and Procedures.**

**Item        9B. Other Information.**

**PART        III**

**Item        10. Directors, Executive Officers and Corporate        Governances.**

**Item        11. Executive Compensation.**

**Item        12. Security Ownership of Certain Beneficial Owners and Management and Related        Stockholder Matters.**

**Item        13. Certain Relationships and Related Transactions, and Director Independences.        **

**Item        14. Principal Accounting Fees and Services.**

**ADDITIONAL        DISCLOSURE ITEMS UNDER REGULATION AB**

**Item              1112(b) of Regulation AB. Significant Obligors Financial              Information.**

**Item              1114(b)(2) and 1115(b) of Regulation AB. Significant Enhancement Provider              Financial Information.**

**Item              1117 of Regulation AB. Legal Proceedings.**

**Item              1119 of Regulation AB. Affiliations and Certain Relationships and Related              Transactions**

**Item              1122 of Regulation AB. Compliance with Applicable Servicing              Criteria.**

**Item              1123 of Regulation AB. Servicer Compliance Statement**

**PART          IV**

**Item          15. Exhibits, Financial Statement Schedules.**

| **Exhibit                        Number** | **Description**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|-------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.0                                       | The                        Underwriting Agreement, dated as of April 13, 2006 between                        Bear, Stearns                        & Co., Inc. as Underwriter and Bear Stearns Asset Backed Securities                        I                        LLC as Depositor and the related Terms Agreement to the Underwriting                        Agreement, dated as of December 18, between Bear, Stearns& Co., Inc.                        as Underwriter and Bear Stearns Asset Backed Securities I                        LLC as                        Depositor. (As previously filed on Form 8-K filed on January                        10, 2007 and                        is hereby incorporated by reference into this report on Form                        10-K) |
| 3.1                                       | Amended                        and Restated Trust Agreement, dated as of December 19, 2006,                        among Bear                        Stearns Asset Backed Securities I LLC, as Depositor, Wilmington                        Trust                        Company, as Owner Trustee and LaSalle Bank National Association,                        as                        Securities Administrator. (As previously filed on Form 8-K                        filed on                        January 10, 2007 and is hereby incorporated by reference                        into this report                        on Form 10-K)                                                                                                                                                     |
| 4.1                                       | Indenture,                        dated as of December 19, 2006, among SACO I Trust 2006-12,                        as Issuing                        Entity, LaSalle Bank National Association, as Securities                        Administrator and                        Citibank, N.A., as Indenture Trustee. (As previously filed                        on Form 8-K                        filed on January 10, 2007 and is hereby incorporated by reference                        into                        this report on Form 10-K)                                                                                                                                                                                                                                                     |
| 31                                        | Sarbanes-Oxley                        Certification                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 33(a)                                     | Report                        on assessment of compliance with servicing criteria for asset-backed                        securities, LaSalle Bank National Association, as Master                        Servicer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 33(b)                                     | Report                        on assessment of compliance with servicing criteria for asset-backed                        securities, EMC Mortgage Corporation, as Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 33(c)                                     | Report                        on assessment of compliance with servicing criteria for asset-backed                        securities, LaSalle Bank National Association, as Securities                        Administrator and Custodian                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 33(d)                                     | Report                        on assessment of compliance with servicing criteria for asset-backed                        securities, GreenPoint Mortgage Funding, Inc., as servicing                        function                        participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 33(e)                                     | Report                        on assessment of compliance with servicing criteria for asset-backed                        securities, GMAC Mortgage, LLC, as servicing function                        participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 33(f)                                     | Report                        on assessment of compliance with servicing criteria for asset-backed                        securities, LandAmerica Tax and Flood Services, Inc., as                        servicing                        function participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 33(g)                                     | Report                        on assessment of compliance with servicing criteria for asset-backed                        securities, Assurant, Inc., as servicing function                        participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 33(h)                                     | Report                        on assessment of compliance with servicing criteria for asset-backed                        securities, GMAC Bank, as servicing function                        participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 34(a)                                     | Attestation                        report on assessment of compliance with servicing criteria                        for                        asset-backed securities, LaSalle Bank National Association,                        as Master                        Servicer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 34(b)                                     | Attestation                        report on assessment of compliance with servicing criteria                        for                        asset-backed securities, EMC Mortgage Corporation, as                        Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 34(c)                                     | Attestation                        report on assessment of compliance with servicing criteria                        for                        asset-backed securities, LaSalle Bank National Association,                        as Securities                        Administrator and Custodian                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 34(d)                                     | Attestation                        report on assessment of compliance with servicing criteria                        for                        asset-backed securities, GreenPoint Mortgage Funding, Inc.,                        as servicing                        function participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 34(e)                                     | Attestation                        report on assessment of compliance with servicing criteria                        for                        asset-backed securities, GMAC Mortgage, LLC, as servicing                        function                        participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 34(f)                                     | Attestation                        report on assessment of compliance with servicing criteria                        for                        asset-backed securities, LandAmerica Tax and Flood Services,                        Inc., as                        servicing function participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 34(g)                                     | Attestation                        report on assessment of compliance with servicing criteria                        for                        asset-backed securities, Assurant, Inc., as servicing function                        participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 34(h)                                     | Attestation                        report on assessment of compliance with servicing criteria                        for                        asset-backed securities, GMAC Bank, as servicing function                        participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 35(a)                                     | Servicer                        compliance statement, LaSalle Bank National Association, as Master                        Servicer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 35(b)                                     | Servicer                        compliance statement, EMC Mortgage Corporation, as                        Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 35(c)                                     | Servicer                        compliance statement, LaSalle Bank National Association,                        as Securities                        Administrator                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 35(d)                                     | Servicer                        compliance statement, GreenPoint Mortgage Funding, Inc.,                        as servicing                        function participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 35(e)                                     | Servicer                        compliance statement, GMAC Mortgage, LLC, as servicing function                        participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 99.1                                      | Sale                        and Servicing Agreement, dated as of December 19, 2006, among                        Bear Stearns                        Asset Backed Securities I LLC, as Depositor, SACO I Trust                        2006-12, as                        Issuing Entity, Citibank, N.A., as Indenture Trustee, LaSalle                        Bank                        National Association, as Master Servicer and Securities Administrator                        and                        EMC Mortgage Corporation as Sponosor and Company. (As previously                        filed on                        Form 8-K filed on January 10, 2007 and is hereby incorporated                        by reference                        into this report on Form 10-K)      |
| 99.2                                      | Administration                        Agreement, dated as of December 19, 2006, among SACO I Trust                        2006-12, as                        Issuing Entity, LaSalle Bank National Association, as Securities                        Administrator, Wilmington Trust Company, as Owner Trustee                        and Bear Stearns                        Asset Backed Securities I LLC, as Depositor. (As previously                        filed on Form                        8-K filed on January 10, 2007 and is hereby incorporated                        by reference into                        this report on Form 10-K)                                                                                                                                               |
| 99.3                                      | Audited                          financial statements of CIFG Assurance North America, Inc.,                          prepared in                          accordance with U.S. GAAP, as of December 31, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

| (b)                        The exhibits required to be filed by Registrant pursuant                        to Item 601 of                        Regulation S-K are listed above and in the Exhibit Index                        that immediately                        follows the signature page hereof. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  (31)                        Rule 13a-14(d)/15d-14(d) Certifications.                                                                                                                                                                                                                                  |   |
|  (33)                        Reports on assessment of compliance with servicing criteria                        for                        asset-backed securities:                                                                                                                                    |   |
|  1.                                                                                                                                                                                                                                                                                                    | LaSalle                        Bank National Association, as Master Servicer |   |
| 2.                                                                                                                                                                                                                                                                                                          | EMC                        Mortgage Corporation, as Company |   |
| 3.                                                                                                                                                                                                                                                                                                          | LaSalle                        Bank National Association, as Securities Administrator and                        Custodian |   |
| 4.                                                                                                                                                                                                                                                                                                          | GreenPoint                        Mortgage Funding, Inc., as servicing function participant |   |
| 5.                                                                                                                                                                                                                                                                                                          | GMAC                        Mortgage, LLC, as servicing function participant |   |
| 6.                                                                                                                                                                                                                                                                                                          | LandAmerica                        Tax and Flood Services, Inc., as servicing function                        participant |   |
| 7.                                                                                                                                                                                                                                                                                                          | Assurant,                        Inc., as servicing function participant |   |
| 8.                                                                                                                                                                                                                                                                                                          | GMAC                        Bank, as servicing function participant |   |
|  (34)                        Attestation reports on assessment of compliance with servicing                        criteria                        for asset-backed securities:                                                                                                                        |
| 1.                                                                                                                                                                                                                                                                                                          | LaSalle                        Bank National Association, as Master Servicer |
| 2.                                                                                                                                                                                                                                                                                                          | EMC                        Mortgage Corporation, as Company |
| 3.                                                                                                                                                                                                                                                                                                          | LaSalle                        Bank National Association, as Securities Administrator and                        Custodian |
| 4.                                                                                                                                                                                                                                                                                                          | GreenPoint                        Mortgage Funding, Inc., as servicing function                        participant |
| 5.                                                                                                                                                                                                                                                                                                          | GMAC                        Mortgage, LLC, as servicing function participant |
| 6.                                                                                                                                                                                                                                                                                                          | LandAmerica                        Tax and Flood Services, Inc., as servicing function                        participant |
| 7.                                                                                                                                                                                                                                                                                                          | Assurant,                        Inc., as servicing function participant |
| 8.                                                                                                                                                                                                                                                                                                          | GMAC                        Bank, as servicing function participant |
| (35)                        Servicer Compliance Statements:                                                                                                                                                                                                                                                 |
| 1.                                                                                                                                                                                                                                                                                                          | LaSalle                        Bank National Association, as Master Servicer |
| 2.                                                                                                                                                                                                                                                                                                          | EMC                        Mortgage Corporation, as Company |
| 3.                                                                                                                                                                                                                                                                                                          | LaSalle                        Bank National Association, as Securities                        Administrator |
| 4.                                                                                                                                                                                                                                                                                                          | GreenPoint                        Mortgage Funding, Inc., as servicing function                        participant |
| 5.                                                                                                                                                                                                                                                                                                          | GMAC                        Mortgage, LLC, as servicing function participant |
| (99.3)                                                                                                                                                                                                                                                                                                      | Audited                        financial statements of CIFG Assurance North America, Inc.,                        prepared in                        accordance with U.S. GAAP, as of December 31, 2006. |

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**SIGNATURES**

|                                                               | LaSalle                        Bank National Association, as Master Servicer |
|--------------------------------------------------------------------|------------------------------------------------------------------------------|
|                                                               |                                                                         |
|  March                        29,                        2007 | /s/                        Andrew Leszczynski                                |
|                                                               | By: Andrew                        Leszczynski                           |
|                                                               | Title: First                        Vice President                      |

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**EXHIBIT          INDEX**

| **Exhibit                      Number** | **Description**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.0                                     | The                      Underwriting Agreement, dated as of April 13, 2006 between                      Bear, Stearns                      & Co., Inc. as Underwriter and Bear Stearns Asset Backed Securities                      I                      LLC as Depositor and the related Terms Agreement to the Underwriting                      Agreement, dated as of December 18, between Bear, Stearns & Co., Inc.                      as Underwriter and Bear Stearns Asset Backed Securities I LLC                      as                      Depositor. (As previously filed on Form 8-K filed on January                      10, 2007 and                      is hereby incorporated by reference into this report on Form                      10-K) |
| 3.1                                     | Amended                      and Restated Trust Agreement, dated as of December 19, 2006,                      among Bear                      Stearns Asset Backed Securities I LLC, as Depositor, Wilmington                      Trust                      Company, as Owner Trustee and LaSalle Bank National Association,                      as                      Securities Administrator. (As previously filed on Form 8-K                      filed on                      January 10, 2007 and is hereby incorporated by reference into                      this report                      on Form 10-K)                                                                                                                                                    |
| 4.1                                     | Indenture,                      dated as of December 19, 2006, among SACO I Trust 2006-12,                      as Issuing                      Entity, LaSalle Bank National Association, as Securities Administrator                      and                      Citibank, N.A., as Indenture Trustee. (As previously filed                      on Form 8-K                      filed on January 10, 2007 and is hereby incorporated by reference                      into                      this report on Form 10-K)                                                                                                                                                                                                                                                |
| 31                                      | Sarbanes-Oxley                      Certification                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 33(a)                                   | Report                      on assessment of compliance with servicing criteria for asset-backed                      securities, LaSalle Bank National Association, as Master                      Servicer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 33(b)                                   | Report                      on assessment of compliance with servicing criteria for asset-backed                      securities, EMC Mortgage Corporation, as Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 33(c)                                   | Report                      on assessment of compliance with servicing criteria for asset-backed                      securities, LaSalle Bank National Association, as Securities                      Administrator and Custodian                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 33(d)                                   | Report                      on assessment of compliance with servicing criteria for asset-backed                      securities, GreenPoint Mortgage Funding, Inc., as servicing                      function                      participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 33(e)                                   | Report                      on assessment of compliance with servicing criteria for asset-backed                      securities, GMAC Mortgage, LLC, as servicing function                      participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 33(f)                                   | Report                      on assessment of compliance with servicing criteria for asset-backed                      securities, LandAmerica Tax and Flood Services, Inc., as servicing                      function participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 33(g)                                   | Report                      on assessment of compliance with servicing criteria for asset-backed                      securities, Assurant, Inc., as servicing function                      participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 33(h)                                   | Report                      on assessment of compliance with servicing criteria for asset-backed                      securities, GMAC Bank, as servicing function                      participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 34(a)                                   | Attestation                      report on assessment of compliance with servicing criteria                      for                      asset-backed securities, LaSalle Bank National Association,                      as Master                      Servicer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 34(b)                                   | Attestation                      report on assessment of compliance with servicing criteria                      for                      asset-backed securities, EMC Mortgage Corporation, as                      Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 34(c)                                   | Attestation                      report on assessment of compliance with servicing criteria                      for                      asset-backed securities, LaSalle Bank National Association,                      as Securities                      Administrator and Custodian                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 34(d)                                   | Attestation                      report on assessment of compliance with servicing criteria                      for                      asset-backed securities, GreenPoint Mortgage Funding, Inc.,                      as servicing                      function participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 34(e)                                   | Attestation                      report on assessment of compliance with servicing criteria                      for                      asset-backed securities, GMAC Mortgage, LLC, as servicing function                      participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 34(f)                                   | Attestation                      report on assessment of compliance with servicing criteria                      for                      asset-backed securities, LandAmerica Tax and Flood Services,                      Inc., as                      servicing function participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 34(g)                                   | Attestation                      report on assessment of compliance with servicing criteria                      for                      asset-backed securities, Assurant, Inc., as servicing function                      participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 34(h)                                   | Attestation                      report on assessment of compliance with servicing criteria                      for                      asset-backed securities, GMAC Bank, as servicing function                      participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 35(a)                                   | Servicer                      compliance statement, LaSalle Bank National Association, as Master                      Servicer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 35(b)                                   | Servicer                      compliance statement, EMC Mortgage Corporation, as                      Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 35(c)                                   | Servicer                      compliance statement, LaSalle Bank National Association, as                      Securities                      Administrator                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 35(d)                                   | Servicer                      compliance statement, GreenPoint Mortgage Funding, Inc., as                      servicing                      function participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 35(e)                                   | Servicer                      compliance statement, GMAC Mortgage, LLC, as servicing function                      participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 99.1                                    | Sale                      and Servicing Agreement, dated as of December 19, 2006, among                      Bear Stearns                      Asset Backed Securities I LLC, as Depositor, SACO I Trust 2006-12,                      as                      Issuing Entity, Citibank, N.A., as Indenture Trustee, LaSalle                      Bank                      National Association, as Master Servicer and Securities Administrator                      and                      EMC Mortgage Corporation as Sponosor and Company. (As previously                      filed on                      Form 8-K filed on January 10, 2007 and is hereby incorporated                      by reference                      into this report on Form 10-K)         |
| 99.2                                    | Administration                      Agreement, dated as of December 19, 2006, among SACO I Trust                      2006-12, as                      Issuing Entity, LaSalle Bank National Association, as Securities                      Administrator, Wilmington Trust Company, as Owner Trustee and                      Bear Stearns                      Asset Backed Securities I LLC, as Depositor. (As previously                      filed on Form                      8-K filed on January 10, 2007 and is hereby incorporated by                      reference into                      this report on Form 10-K)                                                                                                                                            |
| 99.3                                    | Audited                        financial statements of CIFG Assurance North America, Inc.,                        prepared in                        accordance with U.S. GAAP, as of December 31, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

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