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Schneiderman keeps foreclosure prevention program afloat with $10M infusion
Legislature will have to figure out how to more permanently fund services
New York Attorney General Eric Schneiderman will provide $10 million to keep a foreclosure-prevention service afloat until next year.
The funds are for 90 nonprofits that provide legal assistance to homeowners facing foreclosure, the Wall Street Journal reported. In 2012, Schneiderman promised to dedicate $20 million each year for five years to the groups. With the funding set to expire, the nonprofits lobbied to receive $20 million in the latest state budget.
Schneiderman said that the prevention program “provided a vital lifeline that has allowed over 70,000 families to avoid foreclosure.” The $10 million comes from settlements the state received from litigation against banks and mortgage servicers. He said the state legislature will need to find a way to pay for the program after the latest funding runs out.
New York is still dealing with a backlog of foreclosures. There are 62,000 pending foreclosures in the state, down from peak levels in 2014 but greater than what was seen in 2009. [WSJ] — Kathryn Brenzel