New York, NY – April 27, 2009 – (RealEstateRama) — As the subprime crisis continues to intensify, New York City Comptroller William C. Thompson, Jr. today announced that 4,658 individuals and families have called his Foreclosure Intervention Helpline to ask for help to avoid losing their homes.
“Over the past two years my office has helped thousands of individuals and families get the help they need to try to prevent foreclosure on their homes,” Thompson said. “We hear about the Wall Street firms that need help. We hear about the banks that need help. We hear about the car companies that need help. But, we must not forget about the families who need help because they find themselves struggling to pay their mortgage.”
Thompson has been at the forefront in helping New Yorkers address foreclosure and acquire better financial skills. Nearly two years ago, he launched a Foreclosure Intervention Helpline at (212) 669-4600. That Helpline has received more than 4,600 calls, and 2,413 cases are currently being monitored for possible workout with respective lenders. A breakdown of cases follows:
Queens 730 30.25%
Brooklyn 659 27.31 %
Bronx 466 19.31%
Staten Island 156 6.47%
Manhattan 46 1.91%
Outside NYC 356 14.75%
TOTAL 2,413 100%
“From Jamaica, Queens to Stapleton in Staten Island, from Bedford-Stuyvesant in Brooklyn to University Heights in the Bronx, the foreclosure crisis has hurt working and middle class families in every corner of the city,” Thompson said. “My office is here to help.”
Over the past two years, Thompson has unveiled a multi-faceted effort to combat the crisis. It all began on April 26, 2007 when he launched the Helpline. The Helpline links callers with United States Department of Housing and Urban Development certified counselors in their specific neighborhoods. Members of the Comptroller’s Community Action Center have received in-depth training on how to handle foreclosure cases, and monitor each case to ensure help is provided.
Often, Thompson said, many callers indicate that they initially entered into Adjustable Rate Mortgage (ARM) loans with low initial payments and manageable monthly payments. When the interest rate and monthly payment changes take effect, usually within two years, the ARM interest rate can increase drastically and continue to climb by more than one percent and up to a maximum of 16.100% throughout the terms of the loans in some instances. As a result, monthly payments balloon hundreds of dollars, costing thousands of dollars more each year.
Thompson also has published a Foreclosure Prevention Guide. The guide provides necessary information about mortgages, how to avoid foreclosures, and foreclosure prevention counseling services. Both the guide and the television ad are available at www.comptroller.nyc.gov.
Last year, Thompson held an initial series of foreclosure intervention clinics in four of the five boroughs, entitled “Save our Homes Initiative.” This community outreach effort is an extension of Thompson’s commitment to providing accessible services in communities disproportionately impacted by the subprime mortgage crisis. These clinics offer distressed homeowners an opportunity to meet with certified foreclosure intervention counselors, followed by a face-to-face meeting with their respective lenders and/or mortgage servicers’ representative to discuss a viable workout solution – the first step in preventing foreclosure. A total of 842 homeowners attended the five foreclosure intervention clinics Thompson has held since October 2008. The kick-off to the second phase of these series was held Saturday, April 18, 2009 at the Bronx Museum of Arts.
“As economic conditions worsen and foreclosures continue to rise, I will host additional clinics in the other boroughs to ensure more opportunities for New Yorkers to get information and hold onto their homes,” Thompson said.
The next Save Our Homes clinic will be held in at St. John’s University in Queens on Saturday, May 30th from 10 AM – 3 PM. Please contact Comptroller Thompson’s Foreclosure Intervention Helpline at (212) 669-4600 for additional information or to register.
