The Idaho Attorney General's Office believes intervention on the foreclosure crisis on behalf of homeowners is needed.

Attorney General Lawrence Wasden on Monday released a report to legislators on the housing crisis and how those on the verge of losing their home can find help.

More than 19,000 Idaho homeowners received a foreclosure filing last year, an 11 percent increase from 2009 and a 124 percent hike from 2008.

Since 2008, Wasden's office has received more than 300 consumer complaints alleging issues with borrowers' loan servicers.

"Idaho citizens are facing foreclosure at an unprecedented level," Wasden said.

Local sales of bank-owned properties increased 14 percent in 2010 from 2009, according to a recent report from Windermere Coeur d'Alene Realty.

The AG's Office received an increase in homeowner complaints over the past two years that their mortgage servicers were committing fraud. Allegations included servicers foreclosing on homes when a short sale offer is pending or without notifying homeowners before the sale and dates.

While the AG is not authorized to enforce Idaho's foreclosure laws or to intervene in a foreclosure matter, the report suggests legislative, educational and remedial actions that stakeholders might consider when consumers may lose their home.

Recommendations include:

* the AG's Office, starting this spring, broadcasting public service announcements to inform consumers about their options and legal rights;

* appointing a part-time staff member to assist consumers with housing issues;

* holding regional foreclosure prevention workshops;

* access to low-cost mortgage loan assistance attorneys; and

* an early warning notice to at-risk borrowers.

Pat Krug, managing broker for Windermere Coeur d'Alene Realty, said intervention and the report are warranted because she has heard homeowner "horror stories" when it comes to foreclosures. She said people who may lose their home should be aware that local real estate agents can assist homeowners by pointing them in the right direction.

She said about 70 percent of the people that lose a home to foreclosure have never talked to a Realtor about their options.

"I think that's interesting because it shows they are not getting any kind of counseling on what the market value is of their home, if it's possible to sell it or negotiate a short sale with the lender," Krug said.

The AG's report states that consumers lose money to mortgage modification companies because they would rather hire an "expert" to take care of their problems.

"Unfortunately, the companies that consumers turn to for help are not experts and have no interest in helping consumers ..." the report states.

The report suggests that county treasurers could insert with their delinquent tax notices a form that includes a warning about foreclosure rescue scams and encourages homeowners to seek assistance from a certified housing counselor.

"Because the foreclosure crisis is not subsiding in the near future and the current fixes are unlikely to alter the future for thousands of homeowners, it is prudent for stakeholders to consider new approaches to state-specific problems," the report states.