----

**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                                   | Terms                    Agreement to the Underwriting Agreement, dated as of February                    28, 2006,                    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 March 15, 2006 and is hereby incorporated by reference                    into                    this report on Form 10-K)                                                                                                                                                                                                                                                  |
| 3.1                                   | Amended                    and Restated Trust Agreement, dated as of February 28, 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 March                    15, 2006 and is hereby incorporated by reference into this report                    on Form                    10-K)                                                                                                                                     |
| 4.1                                   | Indenture,                    dated as of February 28, 2006, among SACO I Trust 2006-1, 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 March 15, 2006 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, GMAC Mortgage, LLC, servicing function                    participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 33(e)                                 | Report                    on assessment of compliance with servicing criteria for asset-backed                    securities, LandAmerica Tax and Flood Services, Inc., as servicing                    function participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 33(f)                                 | Report                    on assessment of compliance with servicing criteria for asset-backed                    securities, Assurant, Inc., as servicing function                    participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 33(g)                                 | 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,                    Securities Administrator and Custodian                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 34(d)                                 | Attestation                    report on assessment of compliance with servicing criteria for                    asset-backed securities, GMAC Mortgage, LLC, servicing function                    participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 34(e)                                 | Attestation                    report on assessment of compliance with servicing criteria for                    asset-backed securities, LandAmerica Tax and Flood Services,                    Inc., as                    servicing function participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 34(f)                                 | Attestation                    report on assessment of compliance with servicing criteria for                    asset-backed securities, Assurant, Inc., as servicing function                    participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 34(g)                                 | 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, Securities                    Administrator                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 35(d)                                 | Servicer                    compliance statement, GMAC Mortgage, LLC, servicing function                    participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 99.1                                  | Sale                    and Servicing Agreement, dated as of February 28, 2006, among                    Bear Stearns                    Asset Backed Securities I LLC, as Depositor, SACO I Trust 2006-1,                    as                    Issuing Entity, Citibank, N.A., as Indenture Trustee, LaSalle                    Bank                    National Association, as Master Servicer and Securities Administrator                    and                    EMC Mortgage Corporation as Seller and Company. (As previously                    filed on                    Form 8-K filed on March 15, 2006 and is hereby incorporated by                    reference                    into this report on Form 10-K) |
| 99.2                                  | Administration                    Agreement, dated as of February 28, 2006, among SACO I Trust                    2006-1, 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 March 15, 2006 and is hereby incorporated by reference                    into                    this report on Form 10-K)                                                                                                                            |
| 99.3                                  | Form                  10-K Annual Report filed by XL Capital Ltd. on March 1, 2007                  incorporated by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

| (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.                                                                                                                                                                                                                                                           | GMAC                  Mortgage, LLC, as servicing function participant |   |
| 5.                                                                                                                                                                                                                                                           | LandAmerica                  Tax and Flood Services, Inc., as servicing function                  participant |   |
| 6.                                                                                                                                                                                                                                                           | Assurant,                  Inc., as servicing function participant |   |
| 7.                                                                                                                                                                                                                                                           | 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.                                                                                                                                                                                                                                                           | GMAC                  Mortgage, LLC, as servicing function participant |
| 5.                                                                                                                                                                                                                                                           | LandAmerica                  Tax and Flood Services, Inc., as servicing function                  participant |
| 6.                                                                                                                                                                                                                                                           | Assurant,                  Inc., as servicing function participant |
| 7.                                                                                                                                                                                                                                                           | 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 and                  Custodian |
| 4.                                                                                                                                                                                                                                                           | GMAC                  Mortgage, LLC, as servicing function                  participant |

----

**SIGNATURES**

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

----

**EXHIBIT      INDEX **

| **Exhibit                  Number** | **Description**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.0                                 | Terms                  Agreement to the Underwriting Agreement, dated as of February 28,                  2006,                  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 March 15, 2006 and is hereby incorporated by reference                  into                  this report on Form 10-K)                                                                                                                                                                                                                       |
| 3.1                                 | Amended                  and Restated Trust Agreement, dated as of February 28, 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 March                  15, 2006 and is hereby incorporated by reference into this report                  on Form                  10-K)                                                                                                                |
| 4.1                                 | Indenture,                  dated as of February 28, 2006, among SACO I Trust 2006-1, 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 March 15, 2006 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, GMAC Mortgage, LLC, servicing function                  participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 33(e)                               | Report                  on assessment of compliance with servicing criteria for asset-backed                  securities, LandAmerica Tax and Flood Services, Inc., as servicing                  function participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 33(f)                               | Report                  on assessment of compliance with servicing criteria for asset-backed                  securities, Assurant, Inc., as servicing function                  participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 33(g)                               | 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,                  Securities Administrator and Custodian                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 34(d)                               | Attestation                  report on assessment of compliance with servicing criteria for                  asset-backed securities, GMAC Mortgage, LLC, servicing function                  participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 34(e)                               | Attestation                  report on assessment of compliance with servicing criteria for                  asset-backed securities, LandAmerica Tax and Flood Services, Inc.,                  as                  servicing function participant                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 34(f)                               | Attestation                  report on assessment of compliance with servicing criteria for                  asset-backed securities, Assurant, Inc., as servicing function                  participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 34(g)                               | 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, Securities                  Administrator                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 35(d)                               | Servicer                  compliance statement, GMAC Mortgage, LLC, servicing function                  participant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 99.1                                | Sale                  and Servicing Agreement, dated as of February 28, 2006, among Bear                  Stearns                  Asset Backed Securities I LLC, as Depositor, SACO I Trust 2006-1,                  as                  Issuing Entity, Citibank, N.A., as Indenture Trustee, LaSalle Bank                  National Association, as Master Servicer and Securities Administrator                  and                  EMC Mortgage Corporation as Seller and Company. (As previously                  filed on                  Form 8-K filed on March 15, 2006 and is hereby incorporated by                  reference                  into this report on Form 10-K) |
| 99.2                                | Administration                  Agreement, dated as of February 28, 2006, among SACO I Trust 2006-1,                  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 March 15, 2006 and is hereby incorporated by reference                  into                  this report on Form 10-K)                                                                                                     |
|  99.3                          | Form                10-K Annual Report filed by XL Capital Ltd. on March 1, 2007                incorporated by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

----