NEW YORK—The ongoing foreclosure crisis has hit many neighborhoods in New York City, leaving homeowners and communities in a state of despair.
Community advocates claim the situation is due, in part, to banks leaving the properties unkempt and stringing homeowners along on mortgage modification applications.
Jean Andre-Sassine, a Queens Village homeowner, has been trying to get his mortgage modified for over two years. He has been applying for modifications ever since his wife got sick and needed surgery. The possibility of losing his home constantly hangs over his head.
In the meantime, he has seen foreclosed homes in his neighborhood abandoned, taking the community down with them. “Three houses empty on the block—that brings the value down. All the houses [in the neighborhood] have dropped in value,” he said.
New legislation proposed by Councilman Brad Lander aims to solve this problem. The proposed bill would force lenders to post a bond for each foreclosed property, which would allow the city to get paid for fees and fines during the foreclosure and post-foreclosure process.
Lander announced the new legislation in a press conference on Wednesday. He was joined by other council members and supporters from community organizations, including the New York Community of Change and the Center for NYC Neighborhoods, among others.
“This bill will make sure these properties are secured,” said Lander, citing various ailments plaguing vacant properties, including drug activity, prostitution, and squatting. All of these activities have affected foreclosed buildings in the city, he said.
There are about 30,000 homes pending foreclosure in New York City, according to data supplied by Lander’s office.
Some say that banks are not doing enough to help homeowners keep their homes. There are over 12,000 homeowners who need their mortgages modified, said Michael Hickey, executive director of the Center for NYC Neighborhoods, who attended the press conference. Approximately 6,000 of them submitted their application through the center, but only 2,000 have been approved, he added.
A report by the New York Community of Change found that JP Morgan Chase is frugal in providing mortgage modifications. Only 6 percent of homeowners with Chase mortgages who applied for modifications have received permanent modifications, according to the report.
Last month, Chase announced a nationwide plan to expand the services offered to homeowners. The company plans to open 25 new Chase Homeownership Centers in 19 states this year. The centers will provide mortgage borrowers in hard-hit communities with information on ways to keep their homes.
“The banks received their bailout, and this bill is a bailout for homeowners, those who live in communities which have gone through hard times. This bill ensures that these houses [which the banks foreclosed] are in compliance with house laws of the city of New York,” said Councilwoman Letitia James in support of the proposed legislation.
Community advocates claim the situation is due, in part, to banks leaving the properties unkempt and stringing homeowners along on mortgage modification applications.
Jean Andre-Sassine, a Queens Village homeowner, has been trying to get his mortgage modified for over two years. He has been applying for modifications ever since his wife got sick and needed surgery. The possibility of losing his home constantly hangs over his head.
In the meantime, he has seen foreclosed homes in his neighborhood abandoned, taking the community down with them. “Three houses empty on the block—that brings the value down. All the houses [in the neighborhood] have dropped in value,” he said.
New legislation proposed by Councilman Brad Lander aims to solve this problem. The proposed bill would force lenders to post a bond for each foreclosed property, which would allow the city to get paid for fees and fines during the foreclosure and post-foreclosure process.
Lander announced the new legislation in a press conference on Wednesday. He was joined by other council members and supporters from community organizations, including the New York Community of Change and the Center for NYC Neighborhoods, among others.
“This bill will make sure these properties are secured,” said Lander, citing various ailments plaguing vacant properties, including drug activity, prostitution, and squatting. All of these activities have affected foreclosed buildings in the city, he said.
There are about 30,000 homes pending foreclosure in New York City, according to data supplied by Lander’s office.
Some say that banks are not doing enough to help homeowners keep their homes. There are over 12,000 homeowners who need their mortgages modified, said Michael Hickey, executive director of the Center for NYC Neighborhoods, who attended the press conference. Approximately 6,000 of them submitted their application through the center, but only 2,000 have been approved, he added.
A report by the New York Community of Change found that JP Morgan Chase is frugal in providing mortgage modifications. Only 6 percent of homeowners with Chase mortgages who applied for modifications have received permanent modifications, according to the report.
Last month, Chase announced a nationwide plan to expand the services offered to homeowners. The company plans to open 25 new Chase Homeownership Centers in 19 states this year. The centers will provide mortgage borrowers in hard-hit communities with information on ways to keep their homes.
“The banks received their bailout, and this bill is a bailout for homeowners, those who live in communities which have gone through hard times. This bill ensures that these houses [which the banks foreclosed] are in compliance with house laws of the city of New York,” said Councilwoman Letitia James in support of the proposed legislation.
