Loans would aid buyers of foreclosures

From Times Staff and Wires

As many as 1,000 California families could qualify for low-interest loans to purchase foreclosed homes, Gov. Arnold Schwarzenegger has announced.

The state-backed Community Stabilization Home Loan Program will make $200 million from bond sales available to first-time buyers in ZIP Codes with large numbers of foreclosures.

The program will “help stabilize neighborhoods that have homes sitting empty,” the governor said at a ceremony in Stockton. The city is one of the nation’s worst hit from the collapse of the subprime mortgage market.