States and Local Governments Coming Forward To Help Foreclosure Victims
November 21st, 2008
The state and local governments are coming forward to help foreclosure victims. The foreclosure problem has been further mired with unemployment and economic slump. New laws are being promulgated that will allow house owners time to sit down with lenders and negotiate workouts. New job training programmes are also being initiated. The Mayor of Providence David Cicilline (Democrat) said, “They will help. With rising costs … and unemployment, these are serious times for families.”
Many of the efforts at the state and local levels have been successful in somewhat containing foreclosures. From January to the end of October there were 2.6 million foreclosures marking a spike of 45% from the previous year. According to the National Conference of State Legislatures so far this year 31 states as well as the District of Columbia passed 60 laws aimed at regulating foreclosures. Among the initiatives are counseling for house owners, making it mandatory for lenders to inform the state before filing foreclosure and allowing for a grace period for the house owners before proceeding with the formal foreclosure filing.The cities and the counties are preparing to kick off more plans for the prevention of foreclosure following the grants they will get because of the Congress passing of the housing bill.
North Carolina will require lenders to give 45 days notice before foreclosing. Providence has begun a training programme for jobs in September. The list includes 2,500 applicants but the number is growing. In the city 50 persons have been trained. Providence has the highest unemployment figure in the nation – 8.8%. Governor Jon Corzine (Democrat) of New Jersey is planning to gift small entrepreneurs with $3,000 each time they hire a new employee. Governor Tim Pawlenty of Minnesota (Republican) said that $58 million would be spent by the state to purchase, repair and resell repossessed houses. A new Massachusetts’s law requires lenders to allow 90 days grace to house owners.
Professor John Kincaid of Lafayette College opined however that it is too early to say whether the new programmes are having any positive impact or not. Kincaid further added, “These efforts just got started. Do people stay in their homes? It’s too early to tell.” After a fall in September, foreclosures have again shot up. Rick Sharga of RealtyTrac says that the drop was temporary because of lenders adjusting to the new laws passed by states.
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- The foreclosure crisis has led to the Museum of American Finance face an awkward situation
- Non-profit Organizations Spreading Across America to Help Foreclosure Victims
- Problems and Solutions for Underwater Foreclosure Victims
- North Carolina Foreclosure Victims Hungry for Details of Obama Rescue Plan
- More Help Is Coming for Foreclosure Victims from the Treasury
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