We’ve been telling you about the guaranteed growth of this issue since last October.  And a quick check of the SNS archives shows this issue is not going away anytime soon.  We think there’s one contest in particular that will keep this on the front burner for the foreseeable future.

State governments are acting more aggressively to help homeowners avoid foreclosure, frustrated by what they view as the federal government’s inadequate response to the mortgage crisis. But some of the programs are putting states at odds with mortgage lenders.Ohio officials announced Tuesday that they had enlisted more than 1,000 local attorneys to work with certain borrowers free of charge to try to block foreclosures.

Wednesday, an Illinois lawmaker introduced a bill, backed by the state’s governor, that would impose a moratorium of as long as 60 days on foreclosures. The measure would apply only to borrowers who enter housing counseling and is meant to give them more time to work out a deal with lenders.

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