City may offer foreclosure aid

To assist homeowners facing foreclosure, the City Council on Friday asked city officials to explore the feasibility of issuing $100 million in mortgage revenue bonds to help troubled homeowners refinance.

The council also requested that the city’s Community Development Department create a new division, the Office of Foreclosure Assistance, to focus on securing a portion of the $4 billion in federal assistance that will be provided under the federal foreclosure prevention act recently signed into law by President Bush.

“It’s not going to save all the houses out there. In fact, it will be a small amount,” said Councilman Richard Alarcon, who sponsored the measures. “But I think it’s time we take this kind of dramatic action to address the problems of foreclosure.”