Did you know that, in California alone, the total cost of the foreclosure crisis to homeowners, the property tax base, and local governments could add up to at least $650 billion and possibly reach as much as $1 trillion?
That’s just one of the major findings of a new report, Home Wreckers: How Wall Street Is Devastating Communities released today by a coalition of faith, community and labor groups in California that are demanding that Wall Street pay its fair share to helping California recover from this devastating crisis.
Today, homeowners & community leaders from PICO California, Alliance of Californians for Community Empowerment (ACCE), SEIU, and the California Reinvestment Coalition (CRC) are holding events throughout the state to highlight the report’s findings and build support for a new package of state legislation that could help hundreds of thousands save their homes and raise an expected $10 billion in revenue for local governments.
On Saturday, hundreds of people from across the state will converge in Oakland for a town hall meeting with local and state legislators to build support for this new state legislation, including:
* The Homeowner Protection Act (SB 729): will require lenders to finish attempting a loan modification with each borrower before continuing with the foreclosure process.
* The Title Transparency bill (AB 1321): will require that all deeds and transfers of mortgage loans be recorded with the County, so that borrowers can confirm in public record who actually holds their mortgage.
* The Foreclosure Fee bill (AB 935): will seek to incentivize loan modifications by adding a disincentive to foreclosing – a $20,000 fee. This fee begins to allow our communities, cities and state to recoup some of the fiscal costs that result from each foreclosure. The revenue will be collected in a state fund and will go to Public Safety, Public Education and Local Governments.