Paterson signs foreclosure prevention law

Governor David Paterson signed a law designed to protect New Yorkers from foreclosure yesterday, drawing praise from local New York City politicians and community advocates. Under the new law, borrowers with so-called “prime” loans will be privy to court-based settlement conferences, according to Crain’s, an allowance that was previously only extended to sub-prime loan holders. Also under the new legislation, banks would be required to give tenants 90 days notice before foreclosing on their properties. “The laws we have passed in New York have stood as a national model for foreclosure mitigation,” Paterson said. “This effort is about keeping New Yorkers in their homes and protecting them during this economic crisis.”