The following is a reprint from the Sacramento Bee, published October 28, 2011.
The California Housing Finance Agency
has softened its hard stance on borrowers who rent out their
properties, saying it will temporarily suspend any foreclosure actions
it has initiated against such homeowners.
The move comes after a report released Monday by the state Senate Office
of Oversight and Outcomes found that CalHFA, which makes low-interest
loans to first-time buyers, has filed foreclosure notices on 21
homeowners who were still current on their state loans.
The
report, dubbed "Good Deeds Punished," said that many of those borrowers
had moved out into larger residences but were forced to rent out their
first-homes because they were unable to sell them in the down real
estate market.
The agency's reversal was announced Friday by Senate President Pro
Tem Darrell Steinberg, D-Sacramento, and Senate Transportation and
Housing Committee Chair Mark DeSaulnier, D-Concord, who had asked CalHFA
to reconsider.
"The agency is making the right decision during
difficult economic times," said Steinberg. "Struggling families who are
working to do the right thing in meeting their obligations shouldn't be
saddled with an extra, unnecessary burden."
CalHFA had previously said it believes that federal law bars renting in such cases.
No comments:
Post a Comment