States enact legislation to keep pace with foreclosure crisis

In response to the financial crisis, 33 states and Puerto Rico passed at least 99 new laws in 2009 to address foreclosure and mortgage issues, according to a report published by the National Governors Association. With foreclosures at historically high levels, 67 of the laws provided foreclosure mitigation strategies. Another 15 laws took aim at neighborhood stabilization, and 12 laws addressed preventing bad loans. The states of Colorado, Delaware, Iowa, Indiana, Michigan and Minnesota passed laws that required lenders to include foreclosure assistance resources with foreclosures notices. The states of California, Colorado, Michigan, New Jersey and Nevada provided homeowners in default with a deferral or suspension in the foreclosure process. The governors association said the states’ actions continued to show leadership and demonstrate the ability of states to act as laboratories for new ideas. Click here to view the 19-page 2009 State Residential Mortgage Foreclosure Laws report. For more information, visit www.nga.org.