The New York Court System Tried To Solve the Foreclosure Crisis

ForeclosuresRI President and co-founder, Jeremy Shapiro The Washington D.C. region now has one of the fastest growing foreclosure rates in the nation, as 15,613 homes went into foreclosure during the one year period ending in February. Over the past Year, the number of foreclosure per 10,000 homes jumper from 23 to 131 locally while the national average increased form 58 to 87. The nations hardest hit areas of Phoenix, Miami and San Francisco have a rater share of homes in foreclosure me, but the sixfold increase in the Washington area tops that of any other region in the report. A new law has been passed in Connecticut that will take affect on July 1st 2008. The new State law, An Act Concerning Responsible Lending and Economic Security, provides mortgage relief for homeowners struggling to avert foreclosure. A provision if the law requires that notice to be provided to homeowners of their rights to foreclosure mediation services and establishes a court based program to avoid foreclosure. The New York court system is creating a program to reduce the time, expense and potential losses in the foreclosure process. Since January 2005, foreclosure filings have increased by 150 percent statewide from 15,599 to 38,807 and are likely to rise at least another 40 percent in 2008. 90 percent of filing in New York end with people losing their homes. Under the program, two notices will go to the homeowner: one from the lender as part of the summons and complaint to the borrower, and the second from the court when the lender files a special foreclosure request for judicial intervention.

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