So-called "bailouts" of homeowners by local governments take different forms. Some are not "bailouts" at all. In the absence of positive action by the current Federal Government (remember Katrina? and Rita?), other governments such as the City of Seattle and the States of Maryland, Massachusetts, North Carolina and Ohio already have various programs underway in the face of the present credit inferno.
Some of these programs use taxpayer dollars and others are authorized to issue Bonds for revenue without the involvement of taxpayer dollars. Some programs offer conditional financial assistance to homeowners who are about to lose their homes. Other programs pay for mortgage counselors to provide suggestions and advice for refinancing.
These local government alternatives are reported by William Yardley, "Foreclosure Aid Rising Locally, As Is Dissent" p. A1, col. 3 (New York Times Nat'l Ed., Tuesday, February 26, 2008). See also Lisa Prevost, "Confronting The Home-Loan Pain" p. 19, col. 1 "Sunday Business" Section (New York Times Nat'l Ed., Sunday, February 24, 2008). None of the alternatives reported in the linked newspaper articles extend to banks, Bond Insurance Companies, or other financial institutions mixed up in the credit meltdown.
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