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Van Nuys - Tonight, Congressman Brad Sherman (Sherman Oaks) joined the Federal Home Loan Bank of San Francisco and the Los Angeles County NeighborWorks Center for Foreclosure Solutions at a foreclosure prevention workshop to discuss Congressional efforts to assist Valley residents at risk of losing their homes.
Participants received important information on how to work with lenders and counseling agencies and how to avoid being the victim of fraud. Credit and housing counselors, loan servicers, and lenders were on hand to provide individual consultations.
According to the San Fernando Valley Economic Research Center, San Fernando Valley foreclosure filings totaled 673 in May – a 242% increase from a year ago. The dramatic rise in defaults and foreclosures in the San Fernando Valley is hitting many families and communities especially hard as the cost of living increases. The Southland Regional Association of Realtors also reported the Valley median single-family home price fell 31% to $450,000 in May.
Congress is working to ensure that the problems that have placed so many homeowners at risk of foreclosure will not occur again. Congressman Sherman helped pass legislation in the House – The American Housing Rescue and Foreclosure Prevention Act (H.R. 3221) – that would assist homeowners in avoiding foreclosure by refinancing out of a bad loan into a Federal Housing Administration (FHA) insured mortgage that they can afford.
“Homeowners in the San Fernando Valley need relief from foreclosures that can be avoided. This legislation will help those struggling with mortgage loans while stabilizing the housing market, protecting property values and addressing the credit crisis,” said Sherman.
The legislation would also permanently increase the loan limits for San Fernando Valley loans eligible for purchase by Fannie Mae and Freddie Mac and for insurance by the FHA to $729,750. The loan limit was temporarily increased to $729,750 for 2008, but will revert to $417,000 at the end of the year unless new legislation is passed. |
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