Berkeley Looks to Help Homeowners Facing Foreclosure

Berkeley is looking at ways of helping homeowners who are at risk of losing their homes.

Berkeley’s city council is considering several options including offering one-time loans, counseling and mandated mediation between homeowners and banks.

According to a report in The Berkeley Voice, Berkeley foreclosures rose 300%, from 10 in the first 10 months of 2006, to 43 in the same period this year. And the number of Berkeley homeowners who are behind on their mortgage payments and facing foreclosure rose 85%, from 67 in the first 10 months of 2006 to 124 in the same period this year. (All stats from DataQuick).

“People who own homes may be feeling overwhelmed, and this item is to make them feel that they are not all by themselves,” said Councilman Darryl Moore.

Also reported in the same article is the less-than-reassuring fact that, according to Berkeley’s Housing Department, adjustable-rate loans (which trigger many foreclosures because the monthly payment adjusts upward with the interest rate) were used to buy 61% of Berkeley homes in 2005 and 2006.

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