Released: November 18, 2008

States lend a hand to avoid home foreclosures

Source: Marisol Bello. USA Today

States and local governments are stepping up help for residents coping with foreclosures and job losses amid a sinking economy. New assistance efforts range from laws that give homeowners time to renegotiate loans to job training programs.

“They will help,” says Providence Mayor David Cicilline, a Democrat. “With rising costs … and unemployment, these are serious times for families.” Many state and local efforts regulate foreclosures. There were 2.6 million foreclosures from Jan. 1 through Oct. 31 — a 45% jump from the same period last year.

This year, 31 states and the District of Columbia passed 60 laws regulating foreclosures. They counsel homeowners, require lenders to notify the state before a foreclosure filing, or create a grace period for homeowners before lenders file a foreclosure, says the National Conference of State Legislatures.

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