AG's Office Secures $60M to Fight Foreclosure

Attorney General Eric Schneiderman announced last week his commitment to $60 million over the next three years to fund housing counseling and legal services for struggling New York homeowners.

The announcement covers the first year of program funding at $20 million to help homeowners avoid foreclosure. In New York City, 16 legal services organizations and 19 housing counseling agencies will receive over $6.9 million to provide free foreclosure prevention services, as well.

“The rise in foreclosures in New York City and across the state is troubling, but this isn’t just a matter of numbers: each foreclosure represents a devastating loss for a family and a community. This program puts homeowners first, and these organizations will help get our neighborhoods back on track,” said Attorney General Schneiderman, in a statement.

The funds are the result of the National Mortgage Servicing Settlement that was announced in February between the five largest mortgage servicing banks, 49 states, and the federal government over foreclosure abuses.

According to data collected by the New York Federal Reserve, one in ten mortgages in New York City is either in foreclosure or at serious risk of foreclosure because the mortgage is more than 90 days delinquent. In both Brooklyn and Queens, where the problem is most severe, the Fed estimates that 12 percent of homeowners are in foreclosure or at serious risk.

The combined 33 organizations in NYC that will receive funding under the Attorney General’s Homeowner Protection Program were notified in writing last week and are expected to sign contracts to provide services in early October.

Have you or someone you know had an experience with foreclosure in your neighborhood? Let us know in the comments.