New York attorney general Eric Schneiderman's office will fund $1 million in foreclosure prevention services to assist state homeowners who are struggling through the foreclosure crisis.
This money comes from a $22 million settlement five years ago between the AG's office and Ameriquest Mortgage Co., which engaged in predatory and illegal lending practices to sell and refinance mortgages.
Schneiderman is issuing Request for Applications seeking bids from nonprofit legal services and aid organizations to provide direct legal services to homeowners currently in foreclosure or at-risk of losing their home. According to his office, awards for funding could come in as soon as eight weeks.
“We must be creative and aggressive in our efforts to support working families who are struggling to stay in their homes,” Schneiderman said. “This funding will provide thousands of New Yorkers with the legal expertise they desperately need to defend their rights and avoid falling prey to unscrupulous mortgage servicers or foreclosure mill law firms filing fabricated or robo-signed documents.”
Throughout New York, one in every 10 mortgages is at risk of foreclosure, Schneiderman said. According to the office, the number of individuals living in homes in or at risk of foreclosure exceeds the populations of Buffalo, Rochester and Syracuse combined.
At the end of December, federal stimulus funding ended for the New York State Homes and Community Renewal's Foreclosure Prevention Services Program. With this new funding, services that would have been lost will now be able to continue across the state.
Housing organizations have praised Schneiderman's actions to protect struggling homeowners through the foreclosure crisis.
"We applaud the attorney general for making funds available to the Foreclosure Prevention Services Program and providing legal assistance agencies an opportunity to continue providing direct assistance to homeowners in default and foreclosure,” said Deborah Boatright, the Northeast regional director for NeighborWorks America. “The attorney general's smart, bold action will make a real difference in the lives of countless New Yorkers who are struggling to get by and hold on to their most precious possession.”
