Politics & Government

Attorney General Urges Senate to Pass Foreclosure Protections

Bills would increase punishments for bad lenders, reduce backlog of those seeking mediation.

Speaking from Long Island Wednesday, Attorney General Eric Schneiderman urged the state Senate to pass two pieces of legislation that would help New York homeowners in financial distress keep the roofs over their heads. 

One of the pieces of legislation, the Foreclosure Fraud Prevention Act, is designed specifically to prevent money lenders from filing fabricated paperwork in attempts to hoodwink struggling families out of their homes in trumped-up foreclosure proceedings. 

Another, the 'Certificate of Merit' bill, would force banks seeking to foreclose on residents to sit down earlier with individual homeowners in court-mediated sessions to help counsel them on ways to save their homes. The law seeks to reduce paperwork filing delays that, according to the Attorney General's office, have more than 25,000 New York families wrapped up in legal red tape as they fight to save their homes. 

"Wrongful foreclosure and the growing ‘shadow docket’ are preventing thousands of families from even getting a chance to keep their homes,” said Schneiderman on Wednesday. “Both the ‘Certificate of Merit’ bill and the Foreclosure Fraud Prevention Act address these critical problems by proposing common-sense reforms to keep homeowners out of the legal limbo and ensure their rights are honored."

In parts of Queens and Brooklyn in particular, foreclosures have decimated the individual and familial fortunes of thousands of families. Parts of southeast Queens have been foreclosed on block by block in some cases, since the crash of the housing market in 2008. 

"Any family that is facing the loss of their home deserves a fair day in court. But right now, unnecessary delays and incomplete paperwork are denying thousands of families this opportunity every day," said state Sen. Jeff Klein. "These reforms can help change all of that, by ending the stalemate and bringing these homeowners the peace of mind that they deserve."


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