In the last several years, the United States experienced a boom in subprime mortgage lending that targeted buyers who were at high-risk to default on loans. As a result, thousands of Americans are now facing foreclosure as they struggle to pay their mortgages, especially as adjustable rates on many subprime mortgages send borrowers' monthly payments through the roof.
From June of 2007 to mid-2008 over 49,000 New Yorkers were forced to foreclose on their homes. According to a
2007 report from Congress’s Joint Economic Committee which Sen. Schumer chairs, a staggering 67,836 New York Families could lose their homes by the end of 2009 due to subprime mortgages, with nearly two million foreclosures expected nationwide. In New York alone, the economic cost of these foreclosures is predicted to reach over $9.5 billion.
If you are at-risk of foreclosure and need help, communication is key. Here are some numbers and websites that you may utilize for assistance. And, as always, you can contact my New York City office for additional help.
Hotline Numbers
888-995-HOPE is available:
• To any homeowner in America having trouble paying their mortgage
• Any time--24/7
888-995-HOPE offers:
• Absolutely free foreclosure prevention counseling by expert counselors at HUD-approved agencies.
When a constituent calls 888-995-HOPE:
• Service begins immediately—the counselors themselves answer the phone
• Homeowners can get budgeting help, a written financial plan, assistance contacting their lender
• If they'd like face-to-face counseling, they are referred to their local NeighborWorks® agency or other counseling agencies
• If they need additional services, they are referred to agencies in their area.
The details:
888-995-HOPE is provided free of charge by the Homeownership Preservation Foundation, a nonprofit dedicated to preserving homeownership. The Foundation partners with local governments, nonprofits, borrowers, and mortgage lenders/servicers to deliver innovative homeownership preservation opportunities.
In 2006, over 40,000 homeowners sought help through our counseling. Nearly half have avoided foreclosure by working out new loan terms or by selling their home. Currently call volume is increasing by 25% every 6-8 weeks. Callers tend to be female, married, with children, mid to lower income.
In-person counseling is provided by NeighborWorks® organizations, located around the country in all 50 states, Puerto Rico and the District of Columbia. NeighborWorks® organizations are chartered by NeighborWorks® America, a national nonprofit created by Congress to provide financial support, technical assistance, and training for community-based revitalization efforts.
Partners:
American General Financial Services, a member of AIG, Inc., Bank of America, BBWCDF, Citigroup, Countrywide Home Loans, EMC Mortgage, Fannie Mae, Freddie Mac, GE Money, GMAC ResCap, Homeownership Preservation Foundation, Housing Policy Council, HSBC– North America, JPMorgan Chase, LaSalle Bank, Mortgage Bankers Association, National City Mortgage Co., NeighborWorks® America, Ocwen Loan Servicing, LLC, Option One Mortgage, State Farm Insurance, SunTrust Banks, Inc., Washington Mutual and Wells Fargo Home Mortgage.
If you need more information:
About 888-995-HOPE: info@995HOPE.org
About in-person counseling: foreclosuresolutions@nw.org
HUD Approved Housing Counseling Agencies
I believe that connecting people with information and resources to help is an important step in protecting New Yorkers. The links below may provide answers to many of the questions surrounding this difficult issue.
Tips for Avoiding Foreclosure - Department of Housing and Urban Development
Foreclosure Resources for Consumers - Federal Reserve
Information on Homeownership - One Economy Corporation's The Beehive
Preventing Foreclosure - One Economy Corporation's The Beehive
Home and Community Information - Consumer.gov
Credit and Loans - FDIC
Legal Information Related To Your Home - American Bar Association
Legal Information Related to Your Finances - American Bar Association
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