City Councilmember Rory Lancman said that banks frequently delay foreclosure conferences to modify homeowners’ loans or show up unprepared.
News Story (NATIONAL, New York)
New York Observer
August 19, 2015
READ THE FULL STORY HERE
Tags: Housing: Foreclosure
Organizations mentioned/involved: Legal Services NYC (LSNYC)
But as The New York Times recently reported, banks have rejected 72 percent of applicants, or four million borrowers, nationally, a pattern that has been reflected in Queens, legislators say.
“Eighty percent of these banks are not prepared to negotiate in good faith at these conferences, they don’t have the documents… they have turned these conferences into a sham,” Mr. Lancman said, citing the case of one Queens homeowner who had to fill out the application for modification 8 different times, submit bank statements 14 times and verify their income 15 times.
The banks’ unwillingness to comply with the law has made it nearly impossible for homeowners to receive modifications without the help of legal counsel, he added, and the city spends $1.75 million each year specifically on legal services to prevent foreclosure; another $5.4 million goes to other housing legal aid, which includes foreclosure cases.