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Calif. Jobless Rate Likely To Spur More Foreclosures

Lawmakers weigh add'l action
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LOS ANGELES (CBS) — As long as unemployment stays high in California, more people will likely be forced out of their homes by foreclosure, a state panel warned on Monday.

KNX 1070′s John Brooks reports state assembly committees on Judiciary, Banking and Finance, and Housing and Community Development held a joint hearing in Los Angeles to find out if the state government can or should do more to help people in danger of losing their homes.


Kurt Eggert, a law professor from Chapman College, told the committees that while many states require lenders and mortgage providers to file foreclosures in court, California does not.

Homeowners instead get a chance for mediated loan modifications where the lender doesn’t have to prove its case.

In the last 3 months of 2010, more than 35,000 homes were repossessed by lenders statewide — a 31 percent drop from just one year ago.

(©2010 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)

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