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Bailout Banks Shun Efforts To Stem Foreclosures

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(credit: Joe Raedle/Getty Images)

(credit: Joe Raedle/Getty Images)

LOS ANGELES (CBS) — State officials say they are having trouble getting some of the nation’s biggest banks to participate in a program to help nearly 100,000 homeowners who are on the brink of foreclosure.

KNX 1070’s John Brooks reports
Wells Fargo, Chase and Citibank have been slow to comply with the $2 billlion program “Keep Your Home California”.

The principal reduction plan is aimed at helping thousands of borrowers who owe more than their properties are worth, but without cooperation from the banks, the program will likely have limited benefits.

California still plans to move forward with help for unemployed homeowners, offering up to $3,000 a month to make their mortgage payments.

An additional $32 million is available to provide moving assistance for people who have lost their homes to foreclosure.

Wells Fargo, Chase, and Citibank received an estimated $115 billion in taxpayer funds as part of the TARP bailout after the 2008 financial crisis.

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 This material may not be published, broadcast, rewritten, or redistributed.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