Foundations Weigh How to Allay Foreclosures

Wall Street Journal (02/28/08) P. B1; Simon, Ruth
Wealthy philanthropies such as the Ford Foundation and Living Cities are considering funding programs that will help keep families from losing their homes to foreclosure, make it easier for borrowers to modify the terms of their mortgages and put abandoned properties back into use. Living Cities--a consortium of major foundations such as the Bill and Melinda Gates Foundation and financial institutions such as Bank of America, which has been an advocate for affordable housing over the past decade--wants to make at least $10 million in flexible longer-term loans available for local programs and hopes policymakers will use public dollars to create a similar initiative nationally. The amount is relatively small compared to the scope of the mortgage crisis, but the foundations are still trying to determine the best way to respond to the rising number of foreclosures. "No one can figure out where the opportunity lies" and how to use their dollars most effectively, according to George McCarthy, a senior program officer with the Ford Foundation.