Calif. Jobless Rate Likely To Spur More Foreclosures

Lawmakers weigh add'l action

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 This material may not be published, broadcast, rewritten, or redistributed.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.)


More From CBS Los Angeles

KNX 1070 Newsradio

Listen Live