Times: Hercules loan program bails out homeowners for big bucks
— by Jeffrey Wisniewski — 22 September 2009 — Comments Off
Another investigative report from Tom Lochner on the peculiar investments made by the City’s affordable housing agency… “A Hercules affordable housing loan program devised to help residents stave off foreclosure in recent years has bailed out numerous owners of ‘underwater’ homes, including the project manager for the contractor that runs the city’s Affordable Housing Department. Other properties belonged to people working for the city, and some were encumbered with debt double or more their market value. The city stepped in as creditor and paid the bank in full or bought the property outright for the full amount of the debt, records show.“