A new report co-authored by Assemblywoman Helene Weinstein and State Senator Jeff Klein indicates that nearly 30,000 homeowners in New York City are at risk of losing their properties to foreclosure, and the pair are now demanding their colleagues pick up the fight to extend a slew of homeowner protections slated to expire next year.
The homes suffering foreclosures – disproportionately located in minority communities, like those in the Flatlands section of Weinstein’s district – represent a continuing uptick in New York City’s foreclosure rates while the national rate continues its recovery from the 2007 housing crisis, according to the report.
The battles that ensue when homeowners fall behind on their mortgage payments, sometimes because of extenuating circumstances like loss of a job or unexpected medical bills, can see a resident’s assets ripped away by unmovable, monolithic banks.
But legislation first passed in 2009 gave some protection. The bill requires banks sit down with clients and try to hammer out a settlement before any foreclosure actions are taken. It also requires lenders provide notice of foreclosure, and other foreclosure mitigation efforts. The protections aren’t just a salve for that particular homeowner, but for entire communities that see property values plummet amid high foreclosure rates.
“For far too long homeowners have fallen victim to lenders who exploit loopholes and evade our state’s foreclosure filing laws, leaving homeowners stranded with fees and interest racking up and little hope of modifying their loans,” said Weinstein in a press release. “The mandatory settlement conference and 90-day notice provisions for all home loans along with the requirement for banks to negotiate in good faith are critical protections for borrowers at risk of losing their homes.”
That bill, though, is slated to expire in February 2015.
Weinstein is working with Klein, part of the Senate’s leadership coalition, to extend the protections. The bill must pass before the end of the legislative session this month. It passed the Assembly last week, and is now before the State Senate’s Judiciary Committee.
“Extending these expiring provisions is essential to allow homeowners regain their footing and to give them a fair chance at negotiating mortgage loan modifications so they may stay in their homes,” Weinstein said.