California Governor Schwarzenegger Announces Additional Help for Homeowners Facing Foreclosure

12/07/2007

Highlights Assistance Foundations, Non-Profits and Banks Can Provide To Help Local Communities

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12/07/2007 -- Today in Oakland, which has the tenth highest foreclosure rate in the nation, California Governor Arnold Schwarzenegger announced a new fund to help local homeowners who are facing foreclosure keep their homes. The Governor also highlighted the steps that foundations, non-profits and banks statewide can take to help their communities preserve homeownership.

"This is great news for the holiday season and it is another way we can help protect the American dream," said Governor Schwarzenegger. "We have known all along that there is no single solution to the subprime mortgage crisis and this is a tremendous example of the private sector working to solve a community problem."

OneCalifornia Foundation founders Kat Taylor and Tom Steyer contributed the initial donation of $1 million to the OneCalifornia Foundation Bridge Loan Fund, which will be administered by the foundation in Oakland. The bridge loan will assist homeowners that don't qualify for other assistance, such as Governor Schwarzenegger's agreement with loan servicers from Countrywide, GMAC, Litton and HomEq or President George W. Bush's nationwide arrangement with subprime lenders.

Under the foundation's terms, homeowners eligible for loan assistance must reside in Oakland, have a stable income and live in their homes. Eligible homeowners must also attend financial planning classes and develop long-term savings and financial plans in addition to meeting other requirements.

Today, the Governor also highlighted the role that other foundations, non-profits and banks statewide can play in preserving homeownership across the state.

"By working together we can keep Californians in their homes without hurting the American taxpayer," Governor Schwarzenegger added. "I encourage community foundations all over the state to follow this fantastic example from the OneCalifornia Foundation in Oakland and join our efforts."

The following additional resources are available for homeowners:

* The "HOPE Hotline" (1-888-995-HOPE or http://www.995hope.org/) provides free mortgage counseling 24 hours a day, seven days a week.
* The website http://www.yourhome.ca.gov/ has helpful information for prospective homebuyers, as well as homeowners who are experiencing difficulty in keeping payments current. The Spanish language version can be found at: http://www.sucasa.ca.gov/.

Last month, Governor Schwarzenegger launched a $1.2 million public awareness campaign - funded through existing consumer education efforts within the Business, Transportation and Housing Agency and the State and Consumer Services Agency - to help educate homeowners about options that can help them avoid losing their homes to foreclosures. He also announced an agreement with four loan servicers - representing 25 percent of the market - to streamline the loan modification process for subprime borrowers living in their home.

Earlier this year, Governor Schwarzenegger signed legislation to increase protections for Californians who own or plan to purchase homes and to expand affordable housing opportunities. The Governor has also lobbied Congress to raise federal loan limits so that more California families can take advantage of these secure products, rather than relying on subprime loans.

California's home foreclosure rate is twice the national average. Seven of the top 16 metropolitan areas with the highest rates of foreclosures in the nation are in California, according to the latest data from RealtyTrac.

Source: California Governor