States lend a hand in time of job foreclosures

— -- States and local governments are stepping up help for residents coping with foreclosures and job losses amid a sinking economy.

New assistance efforts range from laws that give homeowners time to renegotiate loans to job training programs.

"They will help," says Providence Mayor David Cicilline, a Democrat. "With rising costs … and unemployment, these are serious times for families."

Many state and local efforts regulate foreclosures. There were 2.6 million foreclosures from Jan. 1 through Oct. 31 — a 45% jump from the same period last year.

This year, 31 states and the District of Columbia passed 60 laws regulating foreclosures. They counsel homeowners, require lenders to notify the state before a foreclosure filing, or create a grace period for homeowners before lenders file a foreclosure, says the National Conference of State Legislatures.

Cities and counties expect to launch more foreclosure-prevention plans as they get grants from a housing bill that Congress passed in July.

Among the new plans:

• North Carolina requires lenders to notify the state at least 45 days before a foreclosure filing to allow homeowners to renegotiate loans.

• Providence began a job training program in September that has a growing list of 2,500 applicants. So far, 50 people have been trained in the city, where unemployment mirrors the state's 8.8% rate — the nation's highest.

• New Jersey's Gov. Jon Corzine, a Democrat, is proposing paying small businesses $3,000 for every new hire. The bill passed the state Assembly on Monday and awaits state Senate action as early as next week.

• Minnesota Republican Gov. Tim Pawlenty said in September that the state would spend its $58 million federal grant to help community groups rehab, buy and resell foreclosed houses.

It is too soon to know whether the new programs are helping, says John Kincaid, a government professor at Lafayette College in Easton, Pa.

Foreclosures rose in October after a dip in September, says industry watcher RealtyTrac. Rick Sharga of RealtyTrac says the drop was likely temporary as lenders adjusted to new state laws.