Hundreds of thousands of hard working families have lost their housing while millions of other troubled borrowers continue to desperately seek modifications so they can keep their homes. California continues to suffer from severe devastation from the economic crisis that was largely fueled by the collapse of the housing market. The state has come to be known as “ground zero” in the national foreclosure crisis due to rampant predatory lending and the sudden bursting of the housing price bubble.
One year after receiving $6 million in federal funds to help stem the foreclosure crisis, the city of Santa Ana has spent half of that money and provided housing for only five families while helping two borrowers. Five other homes are in escrow. Adam Elmahrek of Voice of OC has the story.