Over 2 million California homeowners have been foreclosed on since 2008. Seven out of the nation’s 10 metropolitan communities with the highest foreclosure rates are in California. Three cities that declared bankruptcy (Stockton, San Bernardino and Vallejo) are first, third and fourth on this list. Foreclosures strip wealth out of California’s economy, causing businesses to fail and workers to lose jobs on a massive scale. Middle-income Californians, for whom their home is often their primary asset, have been hit especially hard, with many being forced into poverty. Californians have lost $424 billion in wealth due to declining real estate values since 2008.
A FORECLOSURE MORATORIUM would:
• Provide a strong incentive for banks, to negotiate agreements that keep homeowners in their homes;
• Increase pressure on the federal government to step up and make the banks offer real solutions for all homeowners. The banks caused the foreclosure crisis through predatory lending, mortgage securitization, and creation of a phony housing bubble. They need to be held accountable and pay for fixing the damage.
• Revitalize state and local economies by keeping more money in homeowners’ pockets, much of which would be spent in California.
• Break the cycle of foreclosure/economic decline/job loss/more foreclosure.
• Boost revenues, enabling state and local government to restore vital public services and avoid bankruptcy.
• Give homeowners breathing room until the Homeowner Bill of Rights takes effect in 2013, and until other foreclosure reduction strategies under discussion, such as principal reduction, are broadly
We, the undersigned, ask Governor Jerry Brown to declare a three-year foreclosure moratorium to save our homes, our communities and our economic future.