New Yorkers Sink Deeper into Debt & Could Lose Homes Because of Foreclosure Lawyers' Stall Tactics
Nearly 25,000 New Yorkers are at risk of losing their homes because some bank lawyers are exploiting an administrative loophole that is stalling foreclosure lawsuits. New Yorkers are waiting nearly three years on average for foreclosure cases brought against them to be resolved. Meantime, they're facing mounting interest and penalties every month, making it harder for them to afford a mortgage modification.
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But there is a common-sense solution.
Proposed legislation (S4530/A5582-A) would require bank lawyers to certify the legitimacy of their cases when they file the lawsuit, guaranteeing each case will get into the court system and the homeowner will get to mediation within 60 days. This would allow homeowners to work out affordable mortgage modifications with the bank.
State Attorney General Eric Schneiderman, the court system and Senate co-leader Jeff Klein all support the bill, which passed the Assembly last month with support from both Democrats and Republicans. The Senate should pass this bill too and send it to Governor Cuomo before lawmakers leave Albany for the year later this month.
We encourage you to write a Letter to the Editor to express your thoughts on this common-sense legislation that could help thousands of New Yorkers who are at risk of losing their homes.