Consumer advocates  meeting  with the California Senate Banking committee this week are asking for a moratorium on all home foreclosures in the state. They warned that California is facing a tidal wave of foreclosures over the next year and that California is ground zero for problem nationwide.

They reiterated that more than 46,00 home were in foreclosure and that there were 76,732 more mortgages that are currently delinquent.

Witnesses warned the banking committee that the numbers would be rising as the loan adjustments take place on the adjustable loans. They advised that Homeowners appeared paralyzed and don't understand that they may have some options. They are not contacting their lenders and some of the lenders are saying that they can't reach the consumers to even discuss the explosive issue.

There is an anticipated jump in foreclosures widely forecasted in the 4th quarter of this year that will continue through the fall of 2008.

State agencies also have a role to play and have been encouraging the lenders to work out better loan deals with the potentially delinquent borrows.

There are several bills being considered but one in particular calls  for lenders when writing new loans to determine if the borrower can afford to pay back the credits when they reset at higher rates and not just at the initial rates.

Advocacy groups have also called for the immediate creation of a fund to assist the affected homeowners in certain situations and also for greater oversight of the mortgage lenders.

There may also be some state funding that can be squeezed from some of the regulatory agencies budgets to help insure that the borrowers get needed counseling.