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Foreclosures in California
One in five U.S. foreclosures is in California. More than 1/3 of California homeowners owe more on their mortgage than their homes are worth.
1999 deregulation broke down the walls between banks, insurance and securities companies This led to explosion of subprime market and Predatory lending practices. Investors bundled high-risks loans and sold them to investors as safe investments
Current wave of foreclosures due to high rates of unemployment. Banks have little real incentive to work with homeowners Legislation/regulation too slow or inadequate.
Impact of Foreclosures
Lowers the home values of homes within 1/8 mile, decreasing home equity. Undermines financial stability of families and their communities Erodes local tax bases and revenues. Costs local governments money.
Number of Foreclosures 56,689 15,558 14,012 13,809 8,901 8,840 8,271 7,373 5,665
District 1 5,665 $1.9 billion $11.7 million $42 million $1.98 billion
Urge Attorney General to fight for a strong settlement against the banks with real homeowner relief Implement principal reduction program for underwater homeowners Banks should pay their fair share of taxes (in 2010 Bank of America paid no taxes)
Maintain current jobs and create new ones. Counties should implement mandatory mediation to increase communication 75 cities have passed an ordinance fining banks that foreclose and fail to maintain properties
Banks must register with the city when filing a foreclosure notice Fines banks $1000 a day if fail to maintain properties up to code Keeps neighborhoods clean, property values up and bring in needed revenue to the city
Next Steps
Community Meeting:
June 28th, 6:30 pm 2001 Newton Avenue City of San Diego Land Use & Housing Committee July 11th, 2pm Sign up to support the ordinance and keep updated!
Public Hearing:
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