Legal Aid and Counseling for Homeowners Facing Foreclosure
Photo by Steve101
There is a plethora of help programmes including legal and counseling assistance for house owners threatened with foreclosures. But these programmes are now themselves threatened with funds crunch because of budget woes of New York State. Governor Andrew M. Cuomo’s state budget is not kind on them.
The recent budget does away with financing for Foreclosure Prevention Services Program that had made its debut in 2008 when the house owners began to default on their house mortgage loans in staggering numbers. Previously $25 million was sanctioned per year.
Housing advocates are nursing hopes that the state legislature will bring back the funds. Senior staff attorney of Empire Justice Center based in Albany said, “If we don’t get this funding restored in the budget, services will go away for homeowners”. The centre offers legal assistance across New York State for those who are poor.
The programme is now gasping with only $1 million to cover the time when the new budget will come into force from 1st April.
Carol Yopp of Long Island Housing Partnership (foreclosure prevention manager) said that her group has been limping along and not yet allowed anyone to relinquish post. The agency staff comprises of Yopp, a counselor and an assistant overseeing administration. She reported that clients were continuing to knock on their doors.
Pundits are predicting another foreclosure surge in 2012 as the lenders complete their reviewing and resume usual operations. Cuomo planning a new move is set to introduce a Foreclosure Relief Unit under the Department of Financial Services. Its task will be to provide counseling. The office of the attorney general of the state announced that $1 million will be disbursed to non-profit agencies providing legal help to troubled homeowners.
Morris Peters, the spokesperson of the budget office of the state referring to the latest units said, “We believe the same level of services can be provided by this new entity”. But housing advocates complain that these two programmes would be insufficient to replace those that will be eliminated.
Attorney Mike Wigutow of Nassau / Suffolk Law Services in Hempstead said his agency has been receiving money even after the programmes have been trimmed but he is optimistic about getting new funds.
Temporarily he had to give up the help of two paralegals and two lawyers. He is now left with one full and one part time staff working on foreclosures. The agency is hesitating to take on new cases afraid of funds running out next March before the litigation came to a conclusion. He bemoaned, “We’re operating at less than normal”.
Find more New York Foreclosures
