Gov announces foreclosure relief plan in Stockton

First-time home buyers will be eligible to receive some extra help from the state if they are looking to purchase a home in the neighborhoods hit hardest by the recent foreclosure crisis.

Gov. Arnold Schwarzenegger appeared in front of a home for sale in Stockton today to announce that $200 million in loans will be available to those looking to buy their first home.

"This program will not only make it easier for families to purchase their first home, but will also help stabilize neighborhoods that have homes sitting emtpy," Schwarzenegger said in a statement released today.

Loans will be distributed in zip code areas that have reported high numbers of foreclosures. This includes area in San Joaquin, Stanislaus, Merced and Riverside counties.

The loan program will be run by the California Housing Finance Agency. Homes must fall at or under the agencies price limits and families must meet income requirements, according to information supplied by the governor's office.

The $200 million bond fund allocation will be provided by the California Debt Limit Allocation Committee.

For a list of foreclosed properties eligible for this program, visit http://www.calhfa.ca.gov/. Information on sales price limits and eligibility requirements is also available at http://www.calhfa.ca.gov/

First published: Monday, July 21, 2008

Reader Feedback

Rhodie wrote on Jul 24, 2008 11:01 AM:

" But why should the lender have to lose money because home-owners can't handle their own money. Then the lender goes into financial trouble because so many people don't care about their responsibilities and walk away from their homes. And then they have the nerve to say they shouldn't have forclosures on their credit. And why not? They're the victims right, the evil banks forced the loans on them.

You want to keep your home, live on a budget, cut up the credit cards, quit buying cars every couple ov years and stop taking out taking out loans against your house every few years.

I understand those who have lost their jobs and need assistance, they should get the assistance they need. But not those who have treated their house as a never ending source of money then run cause they can't make the payments anymore. "It's not my fault they loaned me the money I asked for." What kind of attitude it this? "

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Rhodie wrote on Jul 24, 2008 10:50 AM:

" When we moved down here the first house we really wanted was asking 480K. Our realtor found the houses value at 370K which was in-line with the surounding houses (mind you this was just before the bubble burst on housing). After negotiations and getting a background check on the house it turns out the owner had refinanced for those loans that are against the house. The 480 was actually more than he paid for the house 5 years earlier. We ended up passing on the house because we didn't think we should pay 110K for his boat, truck and whatever else he spent the equity on. Now if he walked away from his house the lender would suffer because he had to have his toys.

I have no symapthy for these home owners who continually borrow against their home then complain they can't make the payment. Three and four morgages to pay for vacations, boats and whatever other toy tickles your fancy is not the lenders fault.

This lack of symathy does not include those who have lost jobs, behave financially and actually feel some responsibilty for thier woes. cont. "

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galt citizen wrote on Jul 23, 2008 8:59 PM:

" What about Sacramento County? I have lost hundreds of thousands of dollars on my home. I lost my 20% down payment and more. I can't even refi out of my interest only loan. There's a web site called : youwalkaway.com. That's what I plan on doing if the bank does not modify my loan. "

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s & W 500 wrote on Jul 23, 2008 7:08 PM:

" Hey Governor: How about a program for all of us who have NEVER received welfare, WIC, or food stamps! We have paid for all of these demo backed programs but have never received squat.
How about $10,000.00 gas cards from money removed from these "programs" that enable low life milkers to remain individuals who are ruining our country by breeding laziness and state/fed reliance!

Come on! Stand up and work! Don't be lazy! Use a condom, or ask the people who tell you not to use them to subsidize your kids/food. I am tired of paying for YOU LFDB!! "

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DanielH wrote on Jul 21, 2008 10:33 PM:

" Is this program designed to help people who are in foreclosure, or to help first-time home-buyers buy these foreclosed homes? "

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