A coalition of groups that are disappointed the Legislature failed to do much about the wave of foreclosures washing across the state is sponsoring a rally at the state Capitol to demand a special session to deal with homeowners' predicament.

The alliance of cities, housing advocates, mediation organizations and attorneys wants to press Gov. Gary Herbert to call legislators back because almost all legislation dealing with foreclosures failed to pass or get much consideration in the just-ended general session.

"Utah is the only state among the hardest-hit states that has no meaningful pre-foreclosure law providing homeowners with an option to negotiate or engage in mediation with the foreclosure trustee before a sale occurs," said attorney Abraham Bates, of Wasatch Advocates, a law firm that has filed more than 100 lawsuits over foreclosures it claims are being illegally carried out.

Such lawsuits have been largely unsuccessful in Utah. But the problems remain urgent for homeowners, many of whom got loans in which payments ballooned after a few years or had financial problems during the recession. Homeowners who have tried to renegotiate their loans have found the processes nearly impossible to complete.

Afton January, foreclosure coordinator for the Utah Housing Coalition, said the rally is needed to raise awareness among legislators and others at the state Capitol.

"I think there's a misperception that the people who are being foreclosed on are lazy and stupid and irresponsible," she said. "That's really not the case."

RealtyTrac, a company that gathers foreclosure statistics, said this week that one in every 273 Utah homes had a foreclosure filing in February, the fourth-highest rate in the nation.

Five bills before the Legislature were aimed at various aspects of the problems, with all but one failing to pass.

"Many people, including the Utah Legislature, think the economy is turning around and that the foreclosure crisis will go away in the next year or two," said Bates. "They are dead wrong. What we have seen so far in the housing crisis is only the beginning."

The only bill that made it through and is awaiting Herbert's signature was SB261, sponsored by Sen. Curt Bramble, R-Provo. It allows a homeowner who was illegally foreclosed on to seek damages from the trustee who carried out the sale. It also would require the owner of the mortgage note or its agent to notify a homeowner that it intended to continue with the sale of the home despite a temporary reduced payment agreement.

Bramble said the bill was being backed by the Attorney General's Office. But Bates said the legislation falls shorts as "a meaningful or comprehensive solution to the foreclosure crisis in Utah."

Josh King, an attorney and mediator at the Institute of Advanced Mediation & Problem Solving, said there is a realization among some groups that something needs to be done.

"I have been involved in a lot of great discussions with the various parties, and I think there is a realization that the current ... process is not sufficient to reverse the trend," he said in an e-mail. "The reversal will only happen if this communication that began at the Capitol last month continues over the next several months."

tharvey@sltrib.com —

If you go

What • Rally to demand special session on foreclosures

When • 5:30 p.m., March 23

Where • Front steps of Capitol —

Groups that support anti-foreclosure rally

Utah League of Cities and Towns, Utah Housing Coalition, AAA Fair Credit Foundation, the Institute of Advanced Mediation & Problem Solving, Wasatch Advocates, the Utah Housing Coalition, Utah Dispute Resolution, Utah Council on Conflict Resolution and the Utah State Bar Dispute Resolution Section