Late last year the Center for Responsible Lending reported that one out of five subprime loans will end in foreclosure, resulting in a net loss of homeownership for almost one million families costing them well over $164 billion in lost assets. The wave of foreclosures is said to hit California homeowners the hardest; 21.4% of all subprime loans made in the Golden State in 2006 will end in foreclosure. The report’s grim conclusions don’t have to come to pass — if CA Governor Schwarzenegger follows Massachusetts’ lead in protecting homeowners today.

Homeowners To Get State Help on Foreclosures

BOSTON — Gov. Deval L. Patrick has directed state banking officials to help homeowners negotiate mortgage payment terms to avoid foreclosure, a published report said yesterday.

The governor’s decision followed a protest at his Statehouse office Thursday by people whose houses were scheduled to be auctioned off by lenders that have foreclosed on the delinquent loans and seized the property.

Banking Commissioner Steven Antonakes told The Boston Globe that his agency already has secured 60- to 90-day freezes on the foreclosure process from lenders on behalf of 11 of the protesters.