Padavan Legislation Addresses Mortgage Crisis, Foreclosures
BY JOHN TOSCANO

"While the state, city and federal governments all have taken steps to address the foreclosure crisis in New York City, more must be done to ensure homeowners can keep their homes and continue the American dream of home ownership," Padavan declared.

As the mortgage and foreclosure crisis shows no signs of slowing down, state Senator Frank Padavan plans to introduce legislation shortly to help at-risk families and homeowners facing the loss of their homes.

Also coming to the aid of harried homeowners is city Comptroller William C. Thompson Jr., who reported that nearly 2,350 individuals and families have called his Foreclosure Prevention Helpline seeking to avoid losing their homes.

Both officials reported that Queens has been the hardest hit borough in the ongoing mortgage crisis. They cited a recent Realty Trac report saying a total of 1,338 home foreclosure filings were recorded in Queens in November, a 55 percent increase from last November.

Citywide, according to Realty Trac, there were 2,848 city households that filed foreclosure documents in November.

Padavan (R- C, Bellerose) said one bill he plans to file would impose a one-year moratorium on court-ordered mortgageforeclosures. The court would require that a homeowner would have to make a fair and equitable minimum payment that would not alter the financial position of all parties involved.

The second Padavan bill would empower the State of New York Mortgage Agency (SONYMA) to issue $3 billion in bonds to refinance high-cost subprime mortgages. Padavan explained that SONYMA can issue bonds at lower interest rates than subprime mortgages, allowing at-risk homeowners to save thousands in monthly mortgage payments.

"While the state, city and federal governments all have taken steps to address the foreclosure crisis in New York City, more must be done to ensure homeowners can keep their homes and continue the American dream of home ownership," Padavan declared.

"In order to provide relief to homeowners facing home foreclosures, our two-pronged legislative plan will give homeowners opportunities to get out from under the tidal wave that has become the subprime mortgage foreclosure crisis."

Teaming with Padavan and introducing identical bills is Assemblymember James Brennan (D- Brooklyn).

Padavan added, "With adjustable rates for subprime mortgages set to rise again in the near future, the foreclosure crisis shows no signs of ending any time soon. Building a bipartisan consensus on a legislative action plan to help at-risk homeowners should be one of the top priorities early in the 2008 legislative session. Swift action on this legislation will help restore stability in the local housing markets and strengthen long-term health of our economy."

Thompson started to address the subprime mortgage and foreclosure crisis last April when he launched the Foreclosure Prevention Helpline at 212-669-4600, which links callers to the U.S. Department of Housing and Urban Development (HUD). The comptroller's Community Action Center monitors each case as it goes to HUD.

In addition, Thompson holds Banking Days at various banks to improve financial literacy and assist homeowners with foreclosure questions. He has also published a "Foreclosure Prevention Guide" and launched the citywide Save Our Homes initiative.

"This 'Prevention Guide' identifies ways to prevent foreclosures and lists vital resources for people in their neighborhoods in the city, and in the state," Thompson said. "There is an urgent need for this crisis to be rapidly addressed at many levels because it affects every one of us, if not a family member then a friend or a neighbor."