Anti-Foreclosure Program Working
Attorney General Eric T. Schneiderman announced that his office’s Homeowner Protection Program (HOPP) has served 23,760 New Yorkers statewide in less than a year and half, resulting in 6,660 approved and pending loan modifications.
Since October 2012, HOPP has allocated significant funding to 36 legal services organizations and 56 housing counseling agencies dedicated to providing free foreclosure prevention services to struggling homeowners.
The attorney general also detailed the impact of his proposed legislation to increase the number of land banks in New York State from 10 to 20, which will be introduced by AssemblymanWilliam Magnarelli.
In separate legislation outlined by theAttorney General last Friday, Feb. 21, lenders would be required to take responsibility for “zombie properties”-thousands of abandoned homes around the state that are vacant and cause great harm to communities. That bill will also create a statewide registry of zombie properties, so municipalities will be able to track abandoned homes and enforce local property maintenance codes.
“When I took office, I pledged to make sure that no struggling families in New York would have to face foreclosure without consulting a lawyer or housing counselor first. Thanks to HOPP, we have made significant progress on behalf of homeowners statewide, and we are nearing that goal,” said Schneiderman. “In addition, with our proposed ‘zombie properties’ and land bank legislation, we are working to help the other victims of the mortgage crisis: our communities. By rehabilitating towns still reeling from the housing market collapse, we can ensure that all New Yorkers can feel safe and secure in their homes.”
In October 2012, the Attorney General’s Office launched HOPP, a three-year commitment of $60 million to fund housing counseling and legal services for struggling New York homeowners.
HOPP counselors provide at-risk mortgage holders with a range of services, including direct advocacy with lenders, financial counseling and assistance in preparing the complex documentation that homeowners need to submit applications for loan modifications.This process usually results in lower monthly mortgage payments and prevents foreclosures from going forward, but it can take more than a year to negotiate.
Along with providing legal assistance to New York homeowners recovering from the foreclosure crisis, Schneiderman has also proposed new legislation to help localities statewide that are still struggling. One of the bills would change state law to increase the maximum allowable number of land banks from 10 to 20. Many cities do not have land banks but have a critical need for the kind of community redevelopment that land banks can make possible.
With this expansion, this valuable resource will reach even more communities in need.
The Attorney General’s other legislation would address the problem of so-called zombie properties. Too often, when a homeowner falls behind on mortgage payments and receives a notice of arrears or a foreclosure notice, the homeowner abandons the property.
Many families may not understand that they have the right to remain in their home until a judge declares the foreclosure complete, which can take years. At the same time, there is evidence that lenders are actually slowing down the foreclosure process, and in some cases, seeking court orders to cancel the foreclosure action in the middle of the process.
With no one maintaining these derelict properties, they become vulnerable to crime, decay, vandalism and arson. Furthermore, these zombie homes decrease the property value of neighboring homes and become an enormous burden for local code enforcement and emergency service providers.
The bill in development by the Attorney General’s office would close the current loophole, changing state law to make lenders responsible for delinquent properties soon after they are abandoned-not at the end of a lengthy foreclosure process. It would also create a statewide registry for zombie properties, so municipalities will be able to track abandoned homes and enforce local property maintenance codes. Homeowners who are in need of assistance are encouraged to call the Attorney General’s statewide foreclosure hotline at 1-855-HOME- 456 and visit www.AGHomeHelp.com to connect with organizations and agencies in their area that can provide foreclosure prevention services.
