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Congressional committee to review local foreclosure crisis

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Posted: Thursday, September 4, 2008 10:00 pm

A House committee will come to Stockton on Saturday to conduct a formal hearing on the nation's foreclosure crisis and what can be done about it.

The House Committee on Financial Services, chaired by Rep. Barney Frank, D-Massachusetts, will convene at noon at Stockton Arena to examine the effects the foreclosure crisis in the Central Valley. The field hearing will focus on federal, state and local efforts to address foreclosure rates in the Central Valley.

The House committee was invited to Stockton by Rep. Jerry McNerney, D-Pleasanton, who represents the Lodi area, and Rep. Dennis Cardoza, D-Merced, who also represents parts of San Joaquin County.

State Sen. Mike Machado, D-Linden, will testify at the hearing in his role as chairman of the State Senate's Banking, Finance and Insurance Committee.

Machado describes San Joaquin County as "Ground Zero" when it comes to home foreclosures. In fact, the county has the second-highest foreclosure rate in the nation, according to RealtyTrac. Only Merced County is higher.

Machado said that San Joaquin County has the second-highest foreclosure rate because people thought they could move into a larger home or onto a larger lot they thought they could afford. Other issues, he said, include many people having stagnant incomes, and the high cost of gas for San Joaquin County residents commuting to work in the Bay Area.

"Somewhat of a perfect storm," Machado added.

The public is invited to attend the hearing, but they will not be allowed to speak from the floor.

The community may submit written statements about foreclosures to the committee by dropping them off today at McNerney's Stockton office, 2222 Grand Canal Blvd., No. 7, or sending a fax to 476-8587.

House field hearing at a glance

When: Noon Saturday. Should last two hours.

Where: Stockton Arena, 248 W. Fremont St.

Confirmed to testify:

  • State Sen. Mike Machado, D-Linden, chairman of the State Senate's Banking, Finance and Insurance Committee.
  • San Joaquin County Supervisor Steve Gutierrez.
  • Merced Mayor Ellie Wooten.
  • Cynthia Abbot, Sacramento field office director for the U.S. Department of Housing and Urban Development.
  • Patty Amador, president, Ambeck Mortgage Associates, with offices in Modesto and Turlock.
  • Pam Canada, district manager, NeighborWorks HomeOwnership Center, Sacramento region.
  • Carol Ornelas, chief executive officer, Visionary Home Builders of California, based in Stockton.

    Source: Rep. Jerry McNerney

    Foreclosures at a glance

    2,714: Number of filings in San Joaquin County in July, down 13 percent from June.

    72,285: Number of filings in California in July, up five percent from June.

    272,171: Number of filings nationwide.

    One of every 82 households in San Joaquin County received a foreclosure filing in July, more than six times the national average. That compares with one of every 182 homes in California and one of 464 in the United States.

    Source: RealtyTrac

Contact reporter Ross Farrow at rossf@lodinews.com.

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16 comments:

  • posted at 5:31 pm on Fri, Sep 5, 2008.

    Posts:

    bobserver, everyone knows you're one of those bamboozlers. No one even acknowledges you at the coffee shop. You are not liked they're at all. See you at the forum.

     
  • posted at 4:42 pm on Fri, Sep 5, 2008.

    Posts:

    I'll bring you a box of donuts to enjoy. Will you share them?

     
  • posted at 1:12 pm on Fri, Sep 5, 2008.

    Posts:

    Wow....t&c where do you come up with these brilliant comments. How long did it take you to come up with that one. See you at HOC tomorrow morning.

     
  • posted at 12:53 pm on Fri, Sep 5, 2008.

    Posts:

    bobserver, methinks you are full of crap. ROFLlMAO

     
  • posted at 11:07 am on Fri, Sep 5, 2008.

    Posts:

    To Observer: PLEASE VISIT the two REALTOR websites I provided. They say one thing in public but whisper this between themselves. NEHEMIAH ---FHA-- NEHEMIAH FHA NO MONEY DOWN and Mo' money fo' us. "We are just helping sellers and buyers in arms length transactions - we don't set the prices". Yeah right? but when prices drop, income decreases. We can pretend we are all deaf and blind when its time to cash a paycheck. "See no evil, hear no evil..." yeah right?

     
  • posted at 9:52 am on Fri, Sep 5, 2008.

    Posts:

    I have a very good friend who is a local mortgage broker. During a discussion well over 18 months ago he was telling me about these loan packages that allowed "Stated Incomes". I was absolutely blown away. Although he personally did not recommend the loans to his clients he had to make them available because "New York" told him to make them available. I believe the real culprits in this mess are the national mortgage companies. I know, I'm the first to to advocate personal responsibility but what in the world were these people thinking? I guess they were banking on the fact that homes would continue to appreciate at 10 - 15% per year. That way they actually made money if they had to foreclose.

     
  • posted at 9:19 am on Fri, Sep 5, 2008.

    Posts:

    To Robb and dogs4you : I agree with you 100%. If someone is stupid enough to believe the hype, they deserve ALL the financial pain the Realtors can give them. The more they can squeeze out of you the more money they make. What irks me is the fact that the smart ones who refused to drink the cyanide laced Koolaid were berated and attacked for telling the truth. Many of us predicted this disaster years ago. Now the players, want to blame each other and stick the taxpayers with the bill. We need our government to do their job. Investigate and arrest! I am all for raising taxes but ONLY to build more prisons for the criminals who took advantage of the system. From crroked Bankers to loan officers, investment counselors to stock brokers. From Realtors to RE appraisers. Also developers, builders and contractors who had their own little scams going. We need to make room in prison for the formerly homeless welfare recipients who lied and said they earned $200,000/year and every other person who pretended to believe them. Lets see bankers as cellies with street thugs.

     
  • posted at 8:34 am on Fri, Sep 5, 2008.

    Posts:

    The Facts are that NoT everyone got suckered...Especially the BUYERS that realized that if it looks to good to be true.. it is...If you lost your A$$ in this, sorry, that was your fault...

     
  • posted at 7:34 am on Fri, Sep 5, 2008.

    Posts:

    Can`t buy your explnation Audi5000, putting it on the buyer only, I have bought houses in my time and never fully understand the fine print. I trusted the loan company and others to do the right thing by me. Have ever wanted a car, boat, house so bad you could taste it, that`s what some people did in order to get into a house they knew they couln`t afford. But for 0 down and interest only, they were suckered in, and he rest is history. And some have been shut down by the Fed`s, something like Eron, gone.

     
  • posted at 7:32 am on Fri, Sep 5, 2008.

    Posts:

    Here is a LINK to a REALTOR site that brags about and supports NO DOWN PAYMENT mortgages. Its unbelievable! A renter needs MONEY deposits for first and last months, security and cleaning deposits. This is MORE than is required of a buyer! Why should a "buyer" put NO MONEY down and get CASH BACK at closing? This does not sound responsible. But go to the NOW IS THE BEST TIME TO BUY website and see what they are promoting today. Realtors WILL NEVER admit that there are times whem it is NOT the best time to buy. Warren Buffet said its like asking a barber if you need a haircut! -- "Of course you need a haircut". If you don't buy they don't get paid.Visit these sites www.ACTIVERAIN.com and the "Nehemiah" answer to all Realtors problems finding warm bodies to buy their estates.http://activerain.com/blogsview/411522/Nehemiah-AmeriDream-The-Down

     
  • posted at 7:19 am on Fri, Sep 5, 2008.

    Posts:

    To Audi: Lets be reasonable. If you came to me and asked for a loan (people do) and you lied to me and told me your earned $200,000/ year. Do you think that I would believe you on your word or signature? No, I would want proof and would want to have you put up collateral with value to me, not an old termite ridden dump built in 1922, that your appraiser or Realtor friend said is worth $380,000. No I would conduct Due Diligence, since its MY money. But banks and loan companies have been hiding these "investments" by packaging them up as HIGH VALUE CDO's to sell to public teacher pension plan administrators or foreign investors. I still have my money, but the largest including Countrywide have lost BIG time. Our government must immediately stop using taxpayer money to bail out bad decisions by banks. BTW TODAY, You can still get no down or very low down Nehemiah loans! YOU WOULD THINK THEY LEARNED THEIR LESSON?

     
  • posted at 7:07 am on Fri, Sep 5, 2008.

    Posts:

    ..."It is not the burden of the taxpayers to bail out the ignorant and the greedy"...No, we do not, BUT we do need to nail the others to the wall on this one. These people, looking for easy money and big homes, didn't do it on their own. Everyone was looking the other way... now look at the mess.

     
  • posted at 6:25 am on Fri, Sep 5, 2008.

    Posts:

    Audi 5000, you are 100% correct, however, the liberals will make this a "society" problem, and we as taxpayers, will foot the bill.......

     
  • posted at 4:40 am on Fri, Sep 5, 2008.

    Posts:

    edu, don't we have a highball semi-retired real estate appraiser on our city council that helped appraiser those eastside $400,000 estates?

     
  • posted at 3:35 am on Fri, Sep 5, 2008.

    Posts:

    The finger should only be pointed in one direction, to the buyer. They are the ones who accepted the terms and conditions of their purchase price and loan conditions. Just because there are (were) loan companies offering crazy terms and teaser rates doesn't dismiss the buyer from their responsibility to exercise sound fiscal judgement.It is not the burden of the taxpayers to bail out the ignorant and the greedy.

     
  • posted at 2:51 am on Fri, Sep 5, 2008.

    Posts:

    The causes of the problem are well known: 1) Loan companies and banks who sold loans to buyers with no job, no assets and no down payment. 2) Appraisers who were ordered to "hit a price", or would never be hired again. 3) Realtors who had been recovering from the doldrums of a slow market decided to "sell sell sell" (supposedly only for the buyer & NEVER themselves) while looking away from the impending collapse. Wall street investment banks that packaged thousands of loans as "high quality investments", yet many of these packages are only toxic waste. These were sold to pension plans and other counties. We have already lost $800 billion so far. 4) Buyers who's lust for a house or a "bigger house" at record low interest rates lied about income to "qualify" for the loans. 5) Our local government cheered the bubble on knowing the increase in property taxes was good for them 6) The news media for keeping quiet about this disaster even after the bubble popped. They are worried about offending advertisers like builders, Real estate and banks. This will be a finger pointing fest.

     

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