Just open up the newspaper or turn on the television anywhere in the country and it’s hard to avoid news of the foreclosure crisis, especially in Stockton and San Joaquin County. There were nearly 170,000 foreclosure filings in California in the first quarter of this year and over 7,500 in Stockton alone. Those are staggering numbers.
That's why I’m proud to say that last week we passed legislation to help families in financial difficulty, to aid cities and towns in reclaiming neighborhoods and to stabilize the market.
To read more about our efforts, you can read this Los Angeles Times story.
Last December, Congressman Cardoza and I hosted a foreclosure assistance workshop at the Stockton Arena. Families were waiting in line hours before the workshop began and ultimately 500 people passed through the doors.
I heard heartbreaking stories from so many.
When a foreclosure take place, a family loses its homes, a neighborhood becomes destabilized, crime and illicit activity increases. In fact, studies have found that when a house is foreclosed, the value of every other home in an eighth of a mile declines by one percent and the crime rate climbs two percent.
And the problem has grown to the point where the impact of the foreclosure crisis is rippling throughout all sectors of the economy.
The bill that passed the House will provide mortgage refinancing assistance to families facing foreclosure, will help cities and towns purchase forecloses properties for affordable housing, and also increases the loan limits for Fannie Mae, Freddie Mac, and the Federal Housing Administration so people in high-cost areas will be able to access stable, secure mortgage products.
This is an important step that will provide real assistance to help solve this crisis.
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