This leaves many California homeowners out in the cold as many owe much more than the one hundred five percent, which is outlined in the plan.
State officials are crying foul as they believe that the plan as written does nothing for the homeowners, which are in the most dire straits. According to findings reported from the Columbia University Business School, upwards of thirty percent of homeowners on both San Diego and San Bernardino Counties well exceed the limits currently in the plan. An additional twenty-nine percent in Los Angeles County are also in the same perilous situation.
Christopher Mayer, professor of real estate with Columbia University Business School believes that the 105% loan-to-value limit will put undo constraints on the program in the state of California and is also not necessary.
The current administration's efforts towards recovery have received praise from California Assemblyman, Ted Lieu, but have also been sent the request to develop plans which do more for distressed homeowners in the state.
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