Pelosi: Treasury Allocation to California is Step in Right Direction for Many Families at Risk of Losing Their Homes

Washington, D.C. – March 9, 2010 – (RealEstateRama) — Speaker Nancy Pelosi released the following statement today on the Treasury Department’s allocation of $700 million to California’s housing finance agency under the President’s most recent $1.5 billion initiative to prevent foreclosures in the five hardest hit states.

“Today’s announcement is a step in the right direction for many California families at risk of losing their homes. With a 49 percent drop in housing prices since their peak, and 12.4 percent unemployment, California faces unique challenges that require effective local responses.

“With this allocation, California’s housing finance agency will now have $700 million for innovative solutions to the foreclosure crisis. These solutions include mortgage principal forbearance, principal reduction for borrowers with significant negative equity, and assistance to unemployed persons. More California residents will receive the help they need to stay in their homes and communities will emerge stronger as a result.

“With so many households underwater and facing mortgages they can no longer afford to repay, California is grateful for the Obama Administration’s latest effort to tackle a difficult challenge that is at the root of our economic downturn.”

Contact:
Brendan Daly/Nadeam Elshami/Drew Hammill, 202-226-7616