Calif. Jobless Rate Likely To Spur More Foreclosures
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.
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