| More and more states, counties and cities are passing | | | | looking documents don't have good news in them. So |
| laws to help people facing foreclosure save their | | | | they avoid opening them. They are not aware that |
| homes. One of the most recent was the state of | | | | some may tell them of help available to them. |
| New York. | | | | Philadelphia was aware that this problem existed. |
| In August of 2008 the legislature in New York passed | | | | When they started their foreclosure mediation |
| a law which created a mandatory Foreclosure | | | | program in 2008, they enlisted the aid of non-profit |
| Settlement Conference Program. This law only | | | | organizations in the city. Representatives from these |
| covered citizens of New York who had subprime | | | | organizations made in person visits to people facing |
| mortgages and were facing foreclosure. | | | | foreclosure. They explained the city's program to |
| On December 15, 2009, the governor of New York, | | | | them and showed them how the program could help |
| David Patterson, signed into law a bill which expanded | | | | them save their homes. They also worked with them |
| this program to cover all people in the state who | | | | to take the first steps. |
| were facing foreclosure. This new law expanded the | | | | In the fall of 2009 Freddie Mac, a government |
| reforms in the original law passed in 2008. The | | | | sponsored company to whom mortgage companies |
| significant provisions of the law are: | | | | sell many mortgages, contracted with a private firm |
| Lenders must send a 90 day pre-foreclosure notice | | | | to send representatives out to people facing |
| to every person facing foreclosure. This gives people | | | | foreclosure who have mortgages owned by Freddie |
| more time to work with their lenders and to find a | | | | Mac. The job of these representatives is to make |
| solution to stop the foreclosure. | | | | personal contact with these people. When they talk |
| Within 3 days of sending the pre-foreclosure notice, | | | | to them they explain how they can request a loan |
| each lender must not New York's Banking | | | | modification from their mortgage company. They also |
| Department that the notice was sent. This enables | | | | explain what information they will have to provide to |
| the Banking Department the Division of Housing and | | | | their lender. |
| Community Renewal to do two things. First they can | | | | The second issue with the new law is that there are |
| offer help to distressed homeowners during the | | | | no penalties for the mortgage companies if they do |
| ninety day period. Second they track and closely | | | | not comply with the law. Mortgage companies are |
| monitor the foreclosure action in the state. | | | | supposed to send representatives to the mandatory |
| Mandatory Foreclosure Settlement Conferences are | | | | foreclosure settlement conferences. However |
| now required on all cases where people are facing | | | | companies have sent representatives to these who |
| foreclosure. | | | | did not have the power to modify mortgages and |
| People who rent homes which are foreclosed are to | | | | settle the cases. Representatives have even shown |
| be notified of the change in ownership of the home. | | | | up at conferences without the proper paperwork. In |
| They also can remain in their homes for the remaining | | | | November of 2009 one judge was so frustrated by |
| time on their lease or ninety days, whichever is | | | | the actions of OneWest Mortgage on one case that |
| longer. | | | | he wiped out the balance the couple involved owed |
| Lenders or other plaintiffs who acquire a property | | | | on their mortgage. That total was over $500,000. |
| through foreclosure have to maintain it. | | | | OneWest appealed the judge's ruling. If there were |
| People facing foreclosure are protected from loan | | | | penalties in the law for mortgage companies not |
| modification scams. Brokers and companies offering | | | | following through, the judge's action would never had |
| help to them cannot charge upfront fees. | | | | occurred. |
| While this new law should help people facing | | | | What impact does this have on you? |
| foreclosure save their homes, there are certain | | | | If you reside in New York and are facing foreclosure, |
| problems which may prevent it from being as | | | | take advantage of the mandatory settlement |
| effective as it could be. | | | | conference program. It will help you save your home |
| The first is that while the Banking Department is | | | | from foreclosure. Don't believe that because this |
| being notified by lenders of those people to whom | | | | program exists, you can represent yourself. Get a |
| they have sent pre-foreclosure notices and they and | | | | lawyer or an advocate skilled in loan modifications to |
| the Division of Housing and Community Renewal are | | | | help you. |
| offering help, there is no guarantee that all of those | | | | If you reside in another state, see if there is a |
| who are being sent letters on this are opening them. | | | | mediation program available to you. You can find out |
| Many people in severe financial situations and facing | | | | by contacting the Bar association in your county. You |
| foreclosure avoid opening the mail they are sent. | | | | owe it to yourself and your family to do all that you |
| They fear that mail from their lenders or official | | | | can to save your home. |