04/16/2008 - This month alone, Philadelphia's sheriff delayed foreclosure auctions of 759 homes at the city council's urging. Maryland extended the time it takes to complete a foreclosure. State leaders in Ohio recruited more than 1,000 lawyers to aid distressed borrowers.
Frustrated by the slow pace of federal action on behalf of struggling homeowners, some states and cities have struck out on their own to stem an alarming rise in foreclosures that has depressed home prices in most parts of the country and eroded local governments' revenues as property taxes and utility bills go unpaid.
Nine states have committed more than $450 million to "loan funds" aimed at refinancing the mortgages of at-risk borrowers, according to a study by the Pew Charitable Trusts. A handful have brokered deals with major lenders who have pledged to ease terms for some troubled loans. A few states have lengthened the time it takes to complete a foreclosure.
"What the states are saying is: 'We can't wait any longer for the federal government. We have to get ahead of this,' " said Tobi Walker, a senior officer at the Pew Charitable Trusts. "The states are experiencing this pain more directly than the federal government is."
Read the full article States Tackle Foreclosures In Absence of Federal Help on the Washington Post's Web site.
Read the related press release on Pew's site 1 in 33 Homeowners Projected To Be In Foreclosure Within The Next Two Years.
Pew is no longer active in this line of work, but for more information visit the Subprime Mortgages Project on PewHealth.org.