State Senators focusing on mortgage meltdown

June 25, 2008 4:37:05 PM PDT
In California, state senators had another consumer problem in mind: the mortgage crisis.

The Governor's office has estimated that at least a half million California home owners could be in over their heads this year and wont be able to pay their mortgages.

"We cannot turn our backs on this housing meltdown that we are facing in California. It's the hardest hit state than any other in the country. We're going to have to deal with the crisis," says Assemblyman Fabian Nunez.

To stop future problems three new bills were introduced today. One would allow closer state scrutiny of broker firms. Another would prevent agents who estimated a homes value from listing that same property again in case of foreclosure. It will prevent companies from profiting from foreclosures. The third bill will give home owners a break by not charging income tax forgiven by their banks.

A quarter of the nations failing sub prime loans are in California. More bills are expected to be introduced soon to ease the burden on homeowners, lenders, and local governments.


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