California launches program to help foreclosure-stricken cities
Real Estate News From The We Buy Houses Team
California Gov. Arnold Schwarzenegger comes to the nation’s epicenter of the foreclosure crisis Monday when he announces details in Stockton of a new state program designed to get buyers for lender-owned foreclosed homes.
The Community Stabilization Home Loan Program is sponsored by the California Housing Finance Authority.
Under it, first-time homebuyers can buy homes in communities hardest hit by the foreclosure crisis at reduced sales prices, below market mortgage rates and 100 percent loan-to-value financing.
Participating will be financial institutions that provide a special sales price on their eligible Real Estate Owned (REO) properties that are located in selected counties and zip codes in California.
Stockton has more homes in foreclosure per capita than any city in the nation – one out of every 72 in June, according to RealtyTrac, an Irvine-based foreclosure information company.
As part of the program, CalHFA is offering a special interest rate on a 30-year fixed rate mortgage to first-time buyers purchasing the REO properties.