States Take Action on Foreclosures While Federal Government Stumbles

<p>Without a clear federal plan to counteract the swath of foreclosures sweeping across the country, state governments are finding ways to reduce the local impacts.</p>
April 16, 2008, 1pm PDT | Nate Berg
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"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."

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Published on Wednesday, April 16, 2008 in The Washington Post
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