NY Settlement Funds will assist in Foreclosure Prevention Actions.
$15 million of the $132 million New York State will receive in the national
mortgage servicing settlement will be used for foreclosure prevention and
housing support activities the state's attorney general announced on
Wednesday. Eric T. Schneiderman said
that up to $9 million of the funds will be used to extend the state's
Foreclosure Prevention Services Program which was set to end this Sunday and another
$6 million will support housing and community renewal activities through
non-profit community housing organizations.
Schneiderman had announced earlier that his office would fund an
additional $3 million in foreclosure prevention services from proceeds secured
from two other settlements.
"We have an obligation to provide
assistance to the struggling homeowners across the state facing foreclosure,
and this portion of the national mortgage settlement will ensure that families
in New York State have the legal services they deserve to fight wrongful
foreclosures and protect themselves in court," said Attorney General Schneiderman. "Funding for legal services is an
essential first step in bringing relief to the homeowners and communities that
have been devastated by the crash of the housing market. As we continue to
investigate the mortgage crisis that has impacted communities in every corner
of this state, we must ensure that justice and accountability prevail at every
step of the way. I'd like to thank the Assembly, Senate and Governor for
working with our office to make this happen. "