Run by the California Housing Finance Agency, a state agency that finances safe, affordable loans for first-time homebuyers, the program will be available in ZIP codes identified as the most impacted by foreclosures in California including Riverside, Stanislaus, San Joaquin and Merced counties. Areas in Los Angeles, Contra Costa and Alameda counties are also included.  Several mortgage lenders have agreed to partner in the program and offer sales prices on bank-owned properties at least 12 percent below estimated value in the identified ZIP codes.

The $200 million bond fund allocation is provided by the California Debt Limit Allocation Committee to fund the program at no cost to the state’s General Fund.  “This mortgage relief package will give many first time home buyers the opportunity to attain the American dream while also helping areas of the state that have been hit hardest by the mortgage crisis,” said State Treasurer Bill Lockyer, who chairs the Committee.  “I commend the Governor and CalHFA for their leadership and am pleased to work with them to help address California’s housing crisis.”

• Signed legislation to help protect homeowners by requiring a mortgage holder to provide a 30-day notice to a borrower prior to filing any default notice leading to the foreclosure. The new law also provides tenants of foreclosed properties a minimum of 60 days notice to move and requires holders of foreclosed properties to maintain the property.
• Awarded $73 million for affordable housing projects in Proposition 1C and Proposition 46 funds to help more than 1,600 California families rent or purchase affordable housing.
• Announced $69.5 million in permanent low-interest loans from the Proposition 1C housing bonds to jumpstart 14 affordable multi-family projects up and down the state, helping more than 1,000 California families and individuals realize the dream of an affordable rental home.
• Announced $5.6 million to help mortgage and banking industry workers laid off as a result of the subprime crisis make career transitions to high-demand jobs in other industries.
• Announced more than $72 million in federal HOME Investment Partnerships Program funds to provide assistance to first-time homebuyers, reduce the number of bank owned homes and increase the number of rental properties.
• Led a town hall meeting with U.S. Treasury Secretary Paulson in Stockton to discuss help for homeowners facing foreclosure.
• Joined the OneCalifornia Foundation to announce a bridge loan fund for homeowners facing foreclosure in Oakland.
• Awarded $8 million to community based mortgage counseling providers around the state to help avoid foreclosures.
• Launched a $1.2 million public awareness campaign to help educate homeowners about options that can help them avoid losing their homes to foreclosures.
• Announced an agreement with major loan servicers to streamline the loan modification process for subprime borrowers living in their homes.          
• Established the Interdepartmental Task Force on Non-traditional Mortgages to ensure a comprehensive and coordinated approach to the issues raised by subprime loans.
• Signed legislation to increase protections for Californians who own or plan to purchase homes and to expand affordable housing opportunities. 

No Comments »

No comments yet.

RSS feed for comments on this post. TrackBack URL

Leave a comment