As the foreclosure crisis steamrolled across the nation, the Pittsburgh area mortgage market remained stable, largely due to homeowners here preferring more conservative mortgage products. But there are signs that Pittsburgh homeowners are starting to have trouble keeping up with their house payments.

A total of 418 families lost their homes to foreclosure last month in the five-county region that includes Allegheny, Washington, Butler, Beaver and Westmoreland counties, according to RealSTATs, a real estate information company. The bulk of the increased foreclosures, however, were in Allegheny County, where 257 homes were lost in June. So far this year, 2,320 homes have been lost to foreclosure.

Although residential foreclosures in metropolitan Pittsburgh were up 66.5 percent last month compared to June 2007, the numbers still have not eclipsed the spike in foreclosures that occurred in the first half of 2006, which was this area's worse period on record for mortgage defaults.

The number of foreclosures have sparked an efforts by a growing number of government bodies to help families save their homes.

Several major cities have in recent months imposed a moratorium on foreclosures. A similar plan to halt the wave of home losses in Allegheny County is being sponsored by Sheriff William Mullen.

"We are tweaking the plan now," the sheriff said. "It has not come to fruition yet, but we anticipate a plan shortly."

At the same time local governments are wrestling with ways to help people stay in their homes, Congress recently approved a housing relief bill aimed to help 400,000 strapped homeowners who are facing foreclosure and prevent troubled mortgage giants Fannie Mae and Freddie Mac from collapsing.

Under the bill, the government would help struggling homeowners get new, cheaper loans.

"It will provide homeowners an opportunity to refinance to fixed-rate loans based on the current value of the property," said Andrew Jakabovics at the Center For American Progress in Washington, D.C. "They can't refinance through traditional processes because banks will not loan them more than their house is worth."

While the plan that Sheriff Mullen has come up with to help homeowners in this county who are at risk of foreclosure would fall short of a moratorium, it could allow those homeowners to renegotiate their mortgages with lenders.

Sheriff Mullen has asked Allegheny County Common Pleas President Judge Joseph James to order lenders to meet with borrowers to try to work out a solution before any delinquent mortgage in the county goes to a sheriff's sale.

"This is more or less the last-ditch effort on our part," Sheriff Mullen said. "I don't know what else we can do.

"We looked at Philadelphia. They established a moratorium. But we felt the most important thing to do is not postpone, but to get the lenders and borrowers to the table to try to work out a plan to save their homes. We think a moratorium only delays the inevitable."

In May 2007, Massachusetts became the first state in the country to declare a moratorium on foreclosures stemming from predatory lending. Since then, cities such as Philadelphia and San Francisco have followed with either moratoriums or non-binding resolutions.

"We applaud community responses when communities come together and decide what works best for their communities," said Heather Tyler a spokeswoman for the Pennsylvania Department of Banking. "If a moratorium gives families more time to be able to work with their lenders and find solutions, we think that's a great idea."

Daniel Murrer, vice president of RealSTATs, said Sheriff Mullen's plan makes sense from both the homeowner and lender's standpoint.

"It's emotionally devastating to lose a home and banks don't want the headache and expense," Mr. Murrer said.

In addition to the personal misfortune, the flood of families leaving vacant homes behind is threatening the stability of neighborhoods nationwide.

A report released by the U.S. Conference of Mayors in November projected economic losses of $166 billion this year for 361 metropolitan areas stemming from lost of tax revenue and jobs as well as slower consumer spending that comes with home equity declines.

Meanwhile, lenders are struggling with the potential ramifications of moratoriums and other forms of government intervention in the free market.

"In general, we don't think moratoriums are a good idea," said Dan Reisteter, vice president of government relations for the Pennsylvania Bankers Association, which represents 200 banks and savings and loans in this state.

He said Pennsylvania already has one of the longest foreclosure processes in the nation. It can take more than a year, he said, from the time a mortgage lender sends a notice to the borrower of their intent to foreclose to the time a property actually goes to a sheriff's sale.

"There's plenty of time for a borrower to work something out with a reputable lender," Mr. Reisteter said, adding that national lenders will be reluctant to invest in areas where local governments are inclined to intervene.

"If lenders don't have the certainty and security of seizing a loan, they will be more hesitant of making mortgage loans," he said. "That, in the long run, will harm consumers and borrowers."

Michael Sichenzia, chief operating officer of Dynamic Consulting Enterprises, a firm that renegotiates mortgage debt for distressed owners, said government intervention in the mortgage mess is the equivalent of a Band-aid for a serious wound.

He said foreclosures are increasing because banks have tightened the supply of money to potential home buyers. There are fewer buyers able to purchase properties, which increases the glut of properties for sale and that increases the drop in home values and loss in equity for homeowners.

"Anything we do that upsets the sanctity of the contract between two parties can not bode well for the long-term health of the mortgage and credit markets," said Mr. Sichenzia, whose firm is based in Deerfield Beach, Fla. "We have some well-meaning public officials who want to score brownie points for doing good, but they can't see the forest for the trees and miss the big picture completely.

"You can't use the law to effectuate the economic outcome you want. When you try to do that you throw more uncertainty into an already uncertain marketplace."