New Foreclosure Legislation Signed by New York Governor

11 August 2008

Author: admin Posted under Foreclosure Filings

In a situation where time is of the essence, it is indeed a great relief for troubled New York borrowers to know that there is a new law that gives them an extra 90 days to find a solution to their mortgage problems and hopefully, avoid losing their homes to foreclosure.

The new law, signed by New York Governor David Paterson last Tuesday will hopefully give homeowners enough time to contact their lenders and explore options to avoid foreclosure. Aside from providing homeowners with more hope, the said legislation will certainly strengthen existing mortgage lending laws and regulations.

Statewide, the number of foreclosure filings has increased by 14 percent in the first three months of this year compared to that of last year. There are already 50,000 foreclosures to date and an additional 38,000 homes are expected to be repossessed by the end of the year. With the foreclosure rate going up, it is only logical that home prices will go down as a result. Obviously, this is not good news.

Because of this reason, it is understandable that the state government is passing new laws in an effort to slow down the foreclosure crisis.

Homeowners who are having trouble with their mortgage payments should use this extra time wisely. For instance, learning about the foreclosure process will be a big step in fully-understanding your present situation and even give you the right information for you to make an informed decision. If everything is still murky for you, there are also non- profit organizations that can provide you with helpful advice and even legal assistance.

Speaking with your lender is also a must. It is never recommended that you ignore their calls and letters. Keep in mind that during this time, there are a lot of foreclosure rescue companies who will approach you, offering foreclosure help. Be cautious when dealing with these individuals if you do not want to fall victim to foreclosure scams.