There may be hope in preventing foreclosures. Several cities are taking action against the rising numbers of foreclosure homes by supporting the home owner against the lender.

At the moment there are over 500,000 foreclosure homes on the market, in addition to almost 3 million borrowers that are behind on their payments. As the amount of foreclosed homes increase, people are being left homeless, buildings are vacant, crime is rising, and neighborhood price values are dropping.

Douglas Palmer, president of the U.S. Conference of Mayors and the mayor of Trenton, N.J. is tired of waiting on the government, saying, “We’re taking action.”

Last January, Cleveland sued 21 major investment banks/lenders, alleging that their actions regarding loans had caused harm to many neighborhoods. Other cities such as Baltimore, Buffalo, and Minneapolis, have also taken suit. The cities feel that the lenders knowingly made loans to borrowers that were never able to repay the loans.

Despite the negative accusations, some lenders and banks are trying to help. Several grouped together to form the Hope Now Alliance. The organization, helps borrowers work out a repayment plan, or to modify loan terms. The cities are also making their own plans: offering foreclosure counselors, and new deals which forgive up to $5,000 for distressed homeowners if they stay in the home for at least 5 years.