Maryland lawmakers passed some of the nation's most ambitious legislation to control the housing crisis by toughening oversight of the mortgage-lending industry and establishing preemptive measures to help people at risk of foreclosure.  Other states have proposed their own solutions, including:

Ohio
Gov. Ted Strickland and Ohio Supreme Court Chief Justice Thomas J. Moyer announced the addition of a legal component to the Save the Dream initiative, an effort created last month that helps homeowners connect with counselors and nearby assistance. The new "Save the Dream" component helps those who need foreclosure assistance but can't afford a lawyer to connect with an attorney working pro bono.

Michigan
Gov. Jennifer Granholm has signed into law several bills aimed at making state housing loan programs available to more Michigan residents. Some home owners struggling with rising adjustable rate mortgages will be able to get lower fixed rate loans through the Michigan Housing Development Authority. Another program helps people who have been delinquent on payments and are at risk of losing their homes. The programs will be paid for by taxable bonds. Home owners will be responsible for the full value of their refinanced mortgages.

Minnesota
Gov. Tim Pawlenty announced foreclosure prevention counseling in the state will be greatly expanded through a $4.3 million federal grant, the second-largest such grant made to any state.

Washington
Gov. Chris Gregoire signed into law a bill that will protect those at risk of foreclosure from being duped into signing their homes over to third parties. The law cracks down on so-called “foreclosure rescue scams,” in which a third party claiming to act in the home owner’s best interest offers to buy the home that is in danger of being foreclosed upon. They allow home owners to lease their homes back, with the idea that they can re-purchase the home when their financial situations improve. Often the lease terms are as out of reach as the original mortgage, and the home owner ends up defaulting on them.

Illinois
Gov. Rod Blagojevich is pushing legislation to give home owners behind on their payments a grace period of up to 60 days before lenders can foreclose. The measure would require lenders to notify home owners who are a month behind on payments that they have 30 days to enter mortgage counseling and get back on track. Once counseling began, the home owner would have another 30 days to refinance or set a new payment plan. [ return to top ]