New York Passes Bill to Help Foreclosure Victims

The governor of New York, David Paterson, notified the passing of a new bill that aimed at helping the besieged house owners who were facing the danger of losing their houses to foreclosure. The Program Bill no. 46 of the Governor was passed by the legislature of the state last November 26th. It mandates that lenders would have to better their communications with the borrowers before being permitted to initiate foreclosure proceedings.

The bill stretched the previous legislation that had been the handiwork of Governor David Paterson in 2008 aiming to take a crack at the crisis emanating from sub-prime loans. It had resulted in the devastation of many neighbourhoods of the New York State. One of the worst battered regions was south east Queens that has been taking the lead in the foreclosure numbers.

In a statement Paterson observed, “This legislation protects New York neighborhoods from the decay caused by foreclosure by reducing the erosion of area property values and by preventing vacant homes from becoming sites of criminal activity.”

As per the clauses in the bill a notice during the pre-foreclosure stage would have to be sent 90 days ahead to allow more time to the borrowers to solve their problems, noted the governor. The lenders sending that notice to the borrowers would also be expected to notify the state’s banking department of the same. This would make it possible for that agency and other connected groups to come forward with pre-foreclosure help at an early date.

The governor lauded the work done by his office to contain the foreclosure menace and said his previous bills had been instrumental in saving many houses.

Across New York State there was 11% drop in the New York foreclosure numbers so far this year. During the first three quarters of the current year there were 40,000 filings as compared to 45,000 during these same months in 2008. Paterson observed that in the localities of south-east Queens like Jamaica, Springfield Gardens and St. Albans foreclosures were highly concentrated. These were the worst affected pockets of the state.

Richard H. Neiman the Superintendent of Banks of New York state that although there had been a decrease in foreclosure numbers, a law was required to assist many borrowers who are still battling this danger to their homes. In a statement he said, “While the foreclosure crisis began with borrowers in inappropriate sub-prime or exotic mortgages, the recession has expanded the impact of this crisis to homeowners with loans that were originally affordable.”

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