Standing in front of the landmark Residential Foreclosure Center at Bronx County Courthouse on Friday, Senator Jeff Klein announced his push for an extension of critical foreclosure protections for New York homeowners, which are set to expire early next year. These protections include extending the requirement for lenders to provide notice of foreclosure and mandatory settlement conferences for all home loans an additional five years beyond the February 2015 expiration rate. An expiration of these protections could mean that thousands of New York homeowners in pre-foreclosure lose their homes.
The legislation (S. 7119/A.9354), sponsored by Senator Klein and Assemblywoman Helene Weinstein, extends portions of Senator Klein’s 2009 comprehensive foreclosure legislation aimed at protecting homeowners and preserving property values in communities stricken with high rates of foreclosure in the wake of the sub-prime mortgage crisis. Senator Klein highlighted the continuing need for these protections, citing the disproportionate impact of foreclosure on minority communities, with 80% of New York City residents in pre-foreclosure living in majority-minority neighborhoods.
“With nearly 30,000 New York City homeowners currently facing foreclosure, the extension of foreclosure notifications and settlement conferences are critical to keeping the vast majority of these homeowners in their homes,” said Senate Majority Coalition Leader Jeff Klein said. “And this protection doesn’t just help individual homeowners – it helps entire communities. Foreclosures take a toll on entire neighborhoods and can destroy otherwise safe, beautiful areas.”
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