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Report: Few seeking help to avoid foreclosure

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SPRINGFIELD - A majority of people facing imminent foreclosure and the reality of losing their houses aren't seeking out help, a report released Tuesday suggests.

Throughout the recent credit crunch, government officials have urged people to find counseling that could help them save their houses rather than stand buy and do nothing.

Tuesday's report from the State Foreclosure Prevention Working Group suggests 70 percent of people don't get help. Sometimes, counselors can help people work with lenders to change terms of a loan.

It also suggests that while more people are seeking out help, more people are also facing foreclosure.

Attorney General Lisa Madigan, who is part of the group that authored the report, urged lawmakers to help.

"I join with other members of the working group to urge the federal government to develop innovative approaches that recognize the extent and scale of the foreclosure crisis," she said.

Federal lawmakers said Congress has several plans ready for debate and possible approval.

U.S. Sen. Dick Durbin is pushing a plan that would let homeowners rearrange their mortgage terms during bankruptcy proceedings.

"If the administration is going to ride to the rescue of investment banks on Wall Street, it should also provide some relief to those who are about to lose their homes on Main Street," the Springfield Democrat said. "Our goal ought to be preventing foreclosures. Period."

U.S. Rep. Phil Hare's family lost their home when Hare was a child because of his father's medical problems.

"As someone who has experienced the devastation of losing a home, I agree with Attorney General Madigan that the government must do more to help stem the tide of this crisis," the Rock Island Democrat said.

On the state level, the Illinois Senate last week narrowly approved a Gov. Rod Blagojevich plan that would give people facing foreclosure extra time if they seek out counseling. It now heads to the House for further debate.

And Tuesday's report comes with news that March sales of existing houses and sales prices both dropped.

People wanting counseling on how to deal with impeding foreclosures can call the attorney general's office at (866) 544-7151.

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