Posted by: Catherine | January 16, 2008

Contra Costa Supervisors ask for Foreclosure Moratorium


First, in an effort to provide you as much information as you may need, we discovered that Contra Costa County has developed a foreclosure information page with links and resources for families facing foreclosure:  Check out this foreclosure and resource information page HERE .   This same page is available in SPANISH here.

Ok, on with the news of the day 1/16/08.

From the Contra Costa Times, Contra Costa County Supervisors are asking sub-prime mortgage lenders to hold off on foreclosures for six months.  The supervisors (Bonilla and Gioia) proposed the VOLUNTARY measure in hopes that lenders will develop long term solutions with homeowners, so that they can remain in their homes.  

From the article:

“Alameda and Contra Costa are among the 25 hardest-hit counties in the nation when it comes to foreclosures, according to a November report by the Center for Responsible Lending. Among the most-affected East Bay cities are Antioch, San Pablo, Pittsburg, Brentwood, Oakley and Oakland. “

Click here to see this article

While this ‘voluntary’ resolution is a “nice” gesture, only time will tell if there is any long term impact or cooperation from any lenders.  We see constantly folks facing short sale that could stay in their homes if only the lender would modify their payment, or keep the payment the same.  Most lenders we’re seeing are NOT making those loan modifications, or if they do, they are for very short term which still leaves the homeowners in precarious situations financially.  It seems therefore, that even if the lenders make a short term solution, the homeowner will still be in the same situation when the reprieve ends, so it may be delaying the inevitable.  We’ll keep watch though. So, stay tuned….

From the Board of Supervisors Meeting Agenda for January 15th, 2008:

 D.4      CONSIDER adopting Resolution No. 2008/47 calling on subprime mortgage lenders and servicers for properties in Contra Costa County to voluntarily agree to a three-month moratorium on foreclosures.  (Supervisors Gioia and Bonilla) (All Districts)


Responses

  1. We’re experiencing that many lenders are willing to work with homeowners, but only if they have some cash and a stable income to be able to make payments on a new plan or modification. And a few of them are willing to put the foreclosure process on hold for longer than 30 days or so, but six months is probably out of the question.

    If government really wanted to help homeowners, maybe all of the bureaucrats should take the next six months off and refund the unused property taxes collected to the homeowners. Keep the county treasurer open for a week to print out refund checks to anyone who wants to pick them up. That would be a real economic stimulus.

    Too bad my suggestion is just as voluntary (and unrealistic) as a six-month moratorium on foreclosures.


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