Foreclosure Solutions from the Local Government
By Foreclosure-Fighter Staff Writer
With the United States settled in a foreclosure crisis that can be neither ignored nor denied, national leaders are finally taking action. The recent launch of Hope Now, the countrywide anti-foreclosure organization, marked an important step toward addressing and correcting the problems plaguing homeowners.
But, since foreclosure rates vary greatly from state to state and even from city to city, much of the more aggressive anti-foreclosure action is being taken at a state or local level. In the past few weeks, lawmakers and politicians from several states have introduced new foreclosure-fighting measures.
Among the most significant of these measures is the Homeowner Outreach Days program, organized by the Illinois Housing Development Authority. The program, a reaction to Illinois' 16% jump in foreclosure rates since last year, is designed to minimize home loss and stabilize neighborhoods.
The Homeowner Outreach Days will take place during the last two months of this year, and may be continued in the early months of 2008. Set up as workshop-style events, the Outreach Days will focus on education, and will provide interested citizens with a variety of 30-minute courses about the mortgage industry.
The topics to be covered include refinancing, credit counseling, legal rights, loss mitigation, foreclosure prevention, avoiding rescue scams, and debt workout plan instruction. In addition to lecture-type classes, attendees will have the opportunity to speak individually with lenders, who can provide counseling specific to each situation.
For more information on the courses, including times and locations, visit the state of Illinois' website.
The steps being taken in Illinois are consistent with a growing trend nationwide. Many state and local governments have realized that waiting for sweeping, general legislation to be passed at the national level could cost their regions' families thousands of homes.
After Maryland's national foreclosure ranking jumped from 40th to 15th this year, Governor Martin O'Malley reportedly put together an anti-foreclosure task force to address the problem. According to sources, the unit will not only begin educating Marylanders about foreclosure and its causes but also review all relevant laws to determine if updates are needed for today's mortgage market.
Virginia's governor has allegedly taken a similar initiative.
The DailyBreeze.com reports that California Governor Arnold Schwarzenegger has negotiated deals with four major mortgage lenders that will allow borrowers with ARMs to continue paying their pre-adjustment rates rather than missing payments and facing foreclosure.
Schwarzenegger has apparently called this method a "common-sense" approach that doesn't require bailouts or financial boosts from the federal government. His move mirrors a suggestion from FDIC chairwoman Sheila Blair, who proposed that homeowners living in properties and keeping current on payments be allowed some breathing room from mortgage resets.
In Minneapolis, Senator Coleman reportedly acknowledged the widespread effects of foreclosure at a recent forum, noting that now renters, construction workers, and mortgage brokers are feeling the pinch along with homeowners.
Sources indicate that he has offered a plan for loan repayment that would allow homeowners to use up to $100,000 from retirement accounts toward mortgage payments without penalty or taxation, if the amount is repaid within a given time frame.
And the city of Columbus has apparently allocated $5.5 million for maintenance and law enforcement related to home foreclosures.
Local governments seem to be realizing that foreclosure is everyone's problem—and, more importantly, proposing what may become everyone's solutions.