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The Future, the Past, of Foreclosure Homes in New York

The Governor of New York, David A. Paterson, passed a sub-prime lending reform bill into law on August 6th 2008. This is to tackle the existent New York mortgage crisis.

Gov. Paterson said that immediate effects of the bill would be felt by home owners across the state of New York. It is set to attack the faults in banking regulations in New York and provide support to home-owners part of the foreclosure homes in New York.

Lenders now will be required to send to borrowers a pre-foreclosure notice a minimum of ninety days prior to starting proceedings to foreclose on the house. This extra ninety day period has been added to the usual four hundred and forty day New York foreclosure process, making it the lengthiest in the country.

Amongst added provisions minimum standards to underwrite loans will have to be followed by lenders providing consumers with sub-prime loans with stronger protection.

Paterson said that the state has the responsibility to help families associated with the New York foreclosure homes besides reforming regulations in the banking industry to make sure that something like this doesn’t repeat itself in the future. The law has taken care of both, and urged the federal govt. to follow suit.

The housing bill that was signed by President Bush in July has provisions for borrowers who are at risk of facing foreclosures to re-finance their home loans into mortgages insured by the government at more affordable interest rates.

Will these bills in place critics now see borrowers with good credit worthiness facing hurdles acquiring mortgages, as additional costs and the challenges to follow the new regulations would possibly see banks deter from passing sound loans.

About 50,000 homes across the state have faced foreclosures this year. The state has estimated that around 38,000 more could end up facing foreclosure before this year is up. The number of New York foreclosure homes across the state of New York has risen by 14% in this year’s first quarter in comparison to last year’s first quarter.

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