Local Politicians Pushing For Foreclosure Help

SACRAMENTO (CBS13) – President Barack Obama called for Congress to pass a plan to help homeowners in danger of foreclosure, but a number of national lawmakers, including some from California, are already pushing forward a plan.

In San Joaquin County alone, two-thirds of all homes are "underwater," with homeowners owing more on their mortgage than their house is worth. One out of five county homes has already been through the foreclosure process.

San Joaquin County homeowner Bobbie Zawkiewicz said she is only a month away from losing her home, but hopes that Obama's State of the Union speech will lead to action that will quickly give her mortgage help.

"Dealing with the banks has been one of the worst experiences I've ever had," Zawkiewicz said. "It's just an awful situation to be in."

In Tuesday's speech, Obama said homeowners need help right away. "That's why I'm sending this Congress a plan that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage by refinancing at historically low interest rates," he said.

California lawmakers have already proposed steps to ease pressure on homeowners, including:

- Speeding up the short sale process

- Creating a plan to reduce the principal owed on underwater homes

- Requiring lenders to have one point-of-contact for homeowners

Stockton real estate agent John Morris says a couple of key changes in the foreclosure process could help keep people in their homes, but he's not sure that forcing banks to reduce the principal on homes is practical.

"If they start writing these losses off from principal reductions, then it subjects them to tighter scrutiny on the government's part in their financial stability," Morris said.

A national proposal is still in its beginning stages and must still be passed by Congress.