Legislation to Help Homeowners

Here is a sampling of legislative proposals to address the housing crisis that are being considered by some other governments:

Connecticut: Establish emergency mortgage assistance payment program for at-risk homeowners; authorize tenants of a foreclosed property to continue to occupy the property.

Delaware: Strengthen regulations on foreclosure consultants and foreclosure reconveyances to protect homeowners from mortgage rescue schemes that deplete their equity.

The District: Prohibit equity-stripping through unethical property transactions and protect financially distressed homeowners.

Florida: Prohibit "foreclosure-rescue consultants" from engaging in certain acts or failing to perform contracted services; extend the foreclosure timetable to 110 days.

Massachusetts: Create a Massachusetts Homeownership Protection Program and a foreclosure prevention fund; subject mortgage fraud to criminal prosecution.

Michigan: Create a foreclosure prevention fund; provide assistance to distressed homeowners; prohibit foreclosure actions against active military personnel.

New York: Authorize state loans to homeowners facing foreclosure; provide free legal counsel to those undergoing foreclosure; strengthen regulations on businesses engaging in activities relating to home loan defaults and foreclosures.

Ohio: Prohibit foreclosure actions against active military personnel or veterans less than 18 months removed from service.

Virginia: Require people who advertise services to help owners avoid foreclosure to disclose the nature of their services and the owners' right to rescind a contract entered into with such persons.

SOURCE: National Conference of State Legislatures