Legislature takes steps to help reduce foreclosures

A bill unanimously passed by the Legislature last week aims to reduce the soaring number of foreclosures in Washington.

The legislation sets aside $250,000 for a statewide program to help distressed homeowners work out loan modifications or other arrangements with their banks.

The bill calls for the state Housing Finance Commission to administer the program and recruit a pool of volunteer attorneys, mortgage brokers and other professionals to assist homeowners in this task. Gov. Chris Gregoire is expected to sign it.

The bill's sponsor, Sen. Jean Berkey, D-Everett, said she envisions the agencies bringing volunteers and homeowners together at weekend workshops.

"Foreclosure rates are high in this state, and they're getting higher," Berkey said. "We wanted people to understand their options."

Dee Taylor, director of the commission's homeownership division, said she hopes the program will support the roughly two dozen federally approved foreclosure-prevention counseling agencies across the state. These agencies, she said, are overwhelmed with requests from homeowners.

Some of those requests are coming from homeowners tricked into paying hundreds of dollars to scam artists promising solutions.

"It sounds so good it just has to be true, and they're very good at convincing you that it is," Taylor said.

Sanjay Bhatt: 206-464-3103 or sbhatt@seattletimes.com