We’ve been hearing a lot about foreclosures in the news. Is this a big issue in your community? Are foreclosures up because of predatory lending practices or are there other reasons? Are we seeing more foreclosures in affordable housing? If it is an issue for low and moderate income persons, what actions should we be taking? If there was a loan pool made available, how could it best be used?
NEW YORK STATE RURAL ADVOCATES 
In the rural areas of Albany County we are seeing foreclosures occuring because of predatory loans, ARMS, some interest only, and escalating property taxes. A loan pool to help households that have fallen behind 1-2 months would be helpful in addition to working with municipalities to eventually have all of our local governments in NYS accept timely payments on accrued property taxes………
The state Assembly will be holding a hearing on sub prime lending practices and the effects of foreclosures on May 29, 2007 in Albany. The members want to hear about:
What aspects of subprime loans make such loans even less affordable when the borrower is unable to make timely payments (i.e.. payment penalties)?
What can or should be done to help those homeowners facing foreclosure? What are the responsibilities of lenders?
How is the crisis affecting those with good credit?
The Legislators need to know how this is affecting our clients, our
organizations and the availability of credit in the future for low income
New Yorkers.
Please go to their website
http://www.assembly.state.ny.us/comm/Judiciary/20070508
to see the full notice, then plan to attend and give a public statement at
the hearing. You need to fill out the reply form to do this.
They really need to hear from us if anything is going to change.
Thanks.
Alot of the clients I am seeing have mortgages and home equity loans that exceed the value of the homes they are living in due to the rise of the adjustable rate home equity mortgages. Property taxes are also a big issue. I agree with Judy about the property taxes. Some clients are behind on their mortgage and their property taxes. I think the municipalities should work out some type of repayment agreement for them.
People are trying to sell their homes, however, the market has slowed and dropped slightly. Since they have nothing to lose they are also considering walking away from the mortgages and letting the banks take the home through foreclosure. A pool of money would be helpful. The mortgage payments some of my clients have are as high as $3500 per month. It usually takes a combination of agencies to assit with smaller mortgage payments and some intensive case management .