Families to Receive Help from a New Foreclosure Relief Bill

Struggling New York families received a boon from the state government on May 22 when the New York State Legislature passed a new bill that aims to help prevent foreclosure as well as those who are already experiencing it. The new bill was called the “Certificate of Merit” bill has introduced a greater number of reforms that are geared towards helping families who are struggling with foreclosure.

These reforms focus around making the foreclosure process more honest and having court-ordered mediation sessions between lenders and borrowers so they can work out more favorable decisions for the borrower. The bill seemed to be quite popular and passed with a vote of 51 to 12 in the Senate and 111 to 26 in the Assembly. The bill was first proposed by Attorney General Schneiderman.

The Attorney General has also previously set up the HOPP, or Homeowner Protection Program, which is a three year initiative funded by $60 million dollars. This programs funds free legal services and housing counselor programs so that families facing foreclosure can receive much needed help since they usually are of lower income.

The Attorney General’s aid in this dire situation is important because homeowners who are going through foreclosure have fared the worst after the housing bubble burst. Sometimes they become essentially paralyzed because they no options available to them. He wants this bill to give struggling homeowners the option to reach settlements within courts with their primary lenders.

Cases can last for years sometimes and this bill may help to shorten that time period; this often happens because mortgage lenders don’t file the proper paperwork. It will do so by having all homeowners facing foreclosure receive a foreclosure notice and the option to schedule a settlement conference as soon as humanly possible.

Things are looking up for those struggling homeowners. In the near future, 34 legal services and 59 housing agencies will receive $16.1 million to provide essentially free services to those in need. Another $3.9 million will also be given to provide training, technical assistance and various other support services to struggling homeowners.