Calif. Democrats move forward with housing plan

November 11, 2008 6:21:22 PM PST
California Democrats moved forward on Tuesday with their plan to fix the state's housing crisis.

"We need to help folks on the ground, we need a bottoms up solution, we need to do more than to help Gordon Geko the banker, we need to help Joe the Homeowner," said Assembly member Ted Lieu (D) of Torrance.

The Democrats' proposal is similar to the one Governor Schwarzenegger unveiled last week, except it would freeze home foreclosures in the state even longer, from 90 days, to 120.

Banks could avoid that restriction by renegotiating troubled home loans on their own.

There were nearly 80,000 foreclosures in California during the third quarter -- a record high.

Assembly Democrats plan to formally introduce their bill, later this week.


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