NYC housing advocates skeptical of mortgage settlement promises

New York /
Feb.February 21, 2012 12:00 PM

Some American housing advocates doubt that new standards established by government officials to protect homeowners against wrongful foreclosure will do enough to help borrowers, the New York Times reported.

One of the advocates’ main issues is the problems borrowers face in establishing a relationship with an individual representative at the bank, which they say may not improve despite the inclusion of the issue in the $26 million settlement made with banks by state attorneys general earlier this month. Often borrowers are passed off from person to person and are regularly asked for the same documents again and again, making the process of modifying a loan much more difficult than it needs to be.

“It doesn’t seem like much has changed,” said Josh Zinner, co-director of New York-based Neighborhood Economic Development Advocacy Project, speaking about previous efforts to establish one point of contact at banks. “We’re still seeing the same systematic problems.”

One California homeowner that’s been trying to change the terms of her loan since October 2009 told the Times: “I just keep getting passed from one person to another… Nobody is willing to talk to me.” [NYT]


Related Articles

arrow_forward_ios
South Williamsburg resi project faces takeover by lender
South Williamsburg resi project faces takeover by lender
South Williamsburg resi project faces takeover by lender
 Adam Leitman Bailey with 6 Turtle Knoll in Monroe (Adam Leitman Bailey Law Firm, Trulia)
NY foreclosure ban does not apply to shell companies, judge rules
NY foreclosure ban does not apply to shell companies, judge rules
Gov. Kathy Hochul (Getty, iStock)
NY homeowners behind on mortgages get $539M from feds
NY homeowners behind on mortgages get $539M from feds
Six-year fight to end with Williamsburg bankruptcy sale
Six-year fight to end with Williamsburg bankruptcy sale
Six-year fight to end with Williamsburg bankruptcy sale
Gov. Kathy Hochul (Getty, iStock)
Attn brokers: Cease-and-desist could be coming to Brooklyn
Attn brokers: Cease-and-desist could be coming to Brooklyn
Maverick Real Estate Partners principal David Aviram and 416 West 25th Street (Google Maps and LinkedIn)
Appellate court kills Maverick Real Estate’s Chelsea foreclosure bid
Appellate court kills Maverick Real Estate’s Chelsea foreclosure bid
Lender seeks foreclosure on Standard High Line hotel, alleging $187M owed
Lender seeks foreclosure on Standard High Line, alleging $187M owed
Lender seeks foreclosure on Standard High Line, alleging $187M owed
Capital pains: How lenders are getting creative to get paid
Capital pains: How lenders are getting creative to get paid
Capital pains: How lenders are getting creative to get paid
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...