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The state of foreclosure prevention

Perspective: Some states use unproven approaches

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Homeowners who can't afford their mortgage payments may not find much in the way of rescue or relief in the U.S. government's $700 billion bailout of the financial markets. But while the feds have fearfully sat on their hands and watched a severe credit crunch turn into a major crisis, a number of states have introduced their own foreclosure prevention programs, as detailed in "Defaulting on the Dream: States Respond to America's Foreclosure Crisis," a report by the Washington, D.C.-based Pew Center on the States. "The jury is still out about whether and to what extent (these approaches) will be effective. Still, several states among those hardest hit by foreclosures also have been among the most assertive in trying to address the problem," the Pew study stated. The seven "hardest-hit" states are California, Florida, Michigan, Ohio, Texas, New York, Georgia, Illinois, Indiana and Pennsylvania. Two of them, New York and Ohio, along with Marylan...