FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person * JASTROW KENNETH M II   2. Issuer Name and Ticker or Trading Symbol Forestar Real Estate Group Inc. [FOR] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director _____ 10% Owner _____ Officer (give title below) _____ Other (specify below) (Last) (First) (Middle) 1300 SOUTH MOPAC EXPRESSWAY 3-SOUTH 3. Date of Earliest Transaction (Month/Day/Year) 12/14/2007 (Street) AUSTIN, TX 78746 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 12/14/2007 12/14/2007 J   107,962 (1) A $ 0 107,962 (2) D   Common Stock 12/14/2007 12/14/2007 J   2,835 (1) A $ 0 2,835 (3) I By Trustee 401(k) Plan

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Option (right to buy) (4) (5)

$ 18.14

12/14/2007

12/14/2007

J

9,333

02/06/1999

02/06/2008

Common Stock

9,333

$ 0

9,333

D

Option (right to buy) (4) (6)

$ 22.86

12/14/2007

12/14/2007

J

24,896

05/01/1999

05/01/2008

Common Stock

24,896

$ 0

24,896

D

Option (right to buy) (4) (7)

$ 28.03

12/14/2007

12/14/2007

J

32,000

05/07/2000

05/07/2009

Common Stock

32,000

$ 0

32,000

D

Option (right to buy) (4) (8)

$ 18.03

12/14/2007

12/14/2007

J

66,666

02/04/2001

02/04/2010

Common Stock

66,666

$ 0

66,666

D

Option (right to buy) (4) (9)

$ 16.04

12/14/2007

12/14/2007

J

66,664

02/02/2002

02/02/2011

Common Stock

66,664

$ 0

66,664

D

Option (right to buy) (4) (10)

$ 18.05

12/14/2007

12/14/2007

J

33,332

02/01/2003

02/01/2012

Common Stock

33,332

$ 0

33,332

D

Option (right to buy) (4) (11)

$ 11.9

12/14/2007

12/14/2007

J

36,664

02/07/2004

02/07/2013

Common Stock

36,664

$ 0

36,664

D

Option (right to buy) (4) (12)

$ 20.41

12/14/2007

12/14/2007

J

16,666

02/06/2005

02/06/2014

Common Stock

16,666

$ 0

16,666

D

Option (right to buy) (4) (13)

$ 27.46

12/14/2007

12/14/2007

J

33,332

02/04/2006

02/04/2015

Common Stock

33,332

$ 0

33,332

D

Option (right to buy) (4) (14)

$ 36.59

12/14/2007

12/14/2007

J

34,164

02/03/2007

02/03/2016

Common Stock

34,164

$ 0

34,164

D

Restricted (1)

(15)

12/14/2007

12/14/2007

J

41,666

(15)

(15)

Common Stock

41,666

$ 0

41,666

D

Restricted (1)

(16)

12/14/2007

12/14/2007

J

50,000

(16)

(16)

Common Stock

50,000

$ 0

50,000

D

Phantom Stock (4)

(17)

12/14/2007

12/14/2007

J

28,137

(17)

(17)

Common Stock

28,137

$ 0

28,137

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
JASTROW KENNETH M II 1300 SOUTH MOPAC EXPRESSWAY 3-SOUTH AUSTIN, TX 78746	X

Signatures

David M. Grimm signing on behalf of Kenneth M. Jastrow, Jr.		12/18/2007
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	Shares acquired in a pro rata distribution by Temple-Inland Inc. through a spin-off effective December 28, 2007.
(2)	In accordance with the Rights Agreement adopted by the Company on December 11, 2007, Preferred Stock Purchase Rights are deemed to be attached to the shares of Common Stock.
(3)	Reporting Person acquired additional shares through on-going acquisitions under 401(k) plan. By trustee of the Temple-Inland Salaried Savings Plan according to the latest report of the Plan Administrator. (Note: Trustee uses unit accounting; therefore, share equivalents may fluctuate slightly from month to month.)
(4)	Shares acquired in a pro rata distribution by Temple-Inland Inc. through a spin-off on or around December 28, 2007. Option exercise price shown is Temple-Inland Inc.'s exercise price that will be adjusted to reflect Forestar Real Estate Group Inc.'s option exercise price upon the spin-off and pro rata distribution of shares on or around December 28, 2007.
(5)	Options Vesting Schedule for Options Granted 02/06/1998 - exercise price $18.14: Options Exerciserable 02/06/2000 - 1,400; Options Exerciserable 02/06/2001 - 1,400; Options Exerciserable 02/06/2002 - 1,400; Options Exerciserable 02/06/2003 - 1,400; and Options Exerciserable 02/06/2004 - 3,733.
(6)	Options Vesting Schedule for Options Granted 05/01/1998 - exercise price $22.86: Options Exerciserable 05/01/2000 - 5,000; Options Exerciserable 05/01/2001 - 5,000; Options Exerciserable 05/01/2002 - 5,000; Options Exerciserable 05/01/2003 - 5,000; and Options Exercisable 05/01/2004 - 4,896.
(7)	Options Vesting Schedule for Options Granted 05/07/1999 - exercise price $28.03: Options Exerciserable 05/07/2001 - 4,800; Options Exerciserable 05/07/2002 - 4,800; Options Exerciserable 05/07/2003 - 4,800; Options Exerciserable 05/07/2004 - 4,800; and Options Exerciserable 05/07/2005 - 12,800.
(8)	Options Vesting Schedule for Options Granted 02/04/2000 - exercise price $18.03: Options Exerciserable 02/04/2002 - 10,000; Options Exerciserable 02/04/2003 - 10,000; Options Exerciserable 02/04/2004 - 10,000; Options Exerciserable 02/04/2005 - 10,000; and Options Exerciserable 02/04/2006 - 26,666.
(9)	Options Vesting Schedule for Options Granted 02/02/2001 - exercise price $16.04: Options Exerciserable 02/04/2002 - 16,666; Options Exerciserable 02/04/2003 - 16,666; Options Exerciserable 02/04/2004 - 16,666; Options Exerciserable 02/04/2005 - 16,666.
(10)	Options Vesting Schedule for Options Granted 02/01/2002 - exercise price $18.05: Options Exerciserable 02/01/2003 - 8,333; Options Exerciserable 02/01/2004 - 8,333; Options Exerciserable 02/01/2005 - 8,333 and Options Exercisable 02/01/2006 - 8,333.
(11)	Options Vesting Schedule for Options Granted 02/07/2003 - exercise price $11.90: Options Exerciserable 02/07/2004 - 9,166; Options Exerciserable 02/07/2005 - 9,166; Options Exercisable 02/07/2006 - 9,166; and Options Exerciserable 02/07/2005 -9,166.
(12)	Options Vesting Schedule for Options Granted 02/06/2004 - exercise price $20.41: Options Exerciserable 02/06/2005 - 8,333; Options Exerciserable 02/06/2006 - 8,333; Options Exerciserable 02/06/2007 - 8,333 and Options Exerciserable 02/06/2008 -8,333.
(13)	Options Vesting Schedule for Options Granted 02/04/2005 - exercise price $27.46: Options Exerciserable 02/04/2006 - 8,333; Options Exerciserable 02/04/2007 - 8,333; Options Exerciserable 02/04/2008 - 8,333 and Options Exerciserable 02/04/2009 -8,333.
(14)	Options Vesting Schedule for Options Granted 02/03/2006 - exercise price $36.59: Options Exerciserable 02/03/2007 - 8,541;Options Exerciserable 02/03/2008 - 8,541; Options Exerciserable 02/03/2009 - 8,541 and Options Exerciserable 02/03/2010 -8,541.
(15)	Restricted Shares granted on August 9, 2007 that will vest effective February 3, 2009. Restricted Shares will be settled for cash based on the fair market value on the vesting date subject to a 1% ROI performance criteria.
(16)	Restricted Shares granted on August 9, 2007 that will vest effective February 2, 2010. Restricted Shares will be settled for cash based on the fair market value on the vesting date subject to a 1% ROI performance criteria.
(17)	Phantom shares accrued under the Temple-Inland Inc. plan, which includes a dividend reinvestment feature, to be settled upon Reporting Person's retirement from Temple-Inland Inc.

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