Senator Padavan Planning Legislation to Check Foreclosures

January 10th, 2008

Desperate times need desperate measures. The foreclosure crisis is showing no signs of mellowing down. Senator Frank Padavan is thinking about bringing in legislation to help foreclosure victims.

Comptroller William C. Thompson Jr of Queens is also coming forward. He has set up Foreclosures Prevention Helpline. Thompson had been working at solutions from April 2007 by launching the Helpline for Foreclosure Prevention. It links the caller with HUD or US Department of Housing and Urban Development. There is a monitor that checks on each case going through to HUD. Thompson is also observing Banking Days at many banks to bring about financial awareness so that house owners can understand their specific problem. He has also published a guidebook on related lines.

Queens has been one of the worst hit boroughs in this foreclosure crisis. About 1,338 houses were marked by foreclosures in November 2007 – it being a double hike over last November’s figures. According to another source 2,848 houses filed foreclosure documents this last November.

Padavan says that one bill would be for imposing a ban for a year on those foreclosures that had been initiated by court orders. The borrowers would have to make a fair minimum payment that would not affect the financial stand of either of the parties. In the second bill the State of New York Mortgage Agency (SONMYA) would be empowered to issue bonds worth $3 million to help refinance sub-prime mortgages. The interest of the bonds would be lower than that of the sub-prime mortgages. This would help thousands struggling with increased payments.

Padavan felt that although steps have been taken by the Federal, State and City governments to alleviate the crisis much more has to be done to see that eviction does not take place and the dream of ownership of houses does not become an American nightmare. The two-pronged legislative action will effectively help those drowning under foreclosure waves.

Assembly member James Brennan (D – Brooklyn) is also coming forward to stand beside Padavan. The latter expressed the fear that with the ARM’s all set to rise early this year there seems to be no possibility of the crisis blowing over. The 2008 legislative session will give top priority to the foreclosure problem. Speedy moves will help the real estate market get back on rails and give a punch to the sagging economy. The outlook is a long-term approach.