Attorney General Eric Schneiderman said today his office will spend $60 million over three years to fund housing counseling and legal services for struggling New York homeowners.
“The rise in foreclosures across New York is troubling, but this isn’t just a matter of numbers: each foreclosure represents a devastation loss for a family and a community,” Schneiderman said in a news release. “This program puts homeowners first and will get our neighborhoods back on track.”
The attorney general’s office retained the Center for New York City Neighborhoods and the Empire Justice Center as “anchor partners” for the funding program. They will assist with the administration and management of the grants.
The funds represent a portion of the money that New York received as a result of the national mortgage-servicing settlement announced in February between the five largest mortgage-servicing banks, 49 states, and the federal government over foreclosure abuses.
New York’s foreclosure-prevention law entitles homeowners to a 90-day pre-foreclosure notice before a lender can begin a foreclosure action. The notice must include at least five non-profit housing counseling agencies that can assist homeowners at risk of foreclosure.
Legal services funded through the state’s Foreclosure Prevention Services Program were at risk when funding for the program was set to expire on April 1. Schneiderman’s program provides continued services for the next three years.
More information on the program is available online at www.nysmortgagesettlement.com/resources.html.
Contact DeLore at tdelore@tmvbj.com