Written by Craig D. Robins, Esq.

        This past September, Gov. Patterson and state legislators agreed to slow down the foreclosure process by imposing a new law that required mortgage lenders and banks to provide delinquent homeowners with a 90 day notice of their intent to commence foreclosure. Now, Albany lawmakers, fearing the recession will produce more home evictions, plan to examine the effectiveness of this 90 day warning period and whether additional time is needed.

        The purpose of the 90 day notice is to give homeowners the opportunity to try to reach a settlement with their lender before the foreclosure proceeding is commenced.

        Judging from my own experience with Long Island consumers who have fallen behind, communicating with a mortgagee can be very time consuming and frustrating. Ninety days is often an insufficient period of time to work out debts with a lender. Many mortgagees are also unreceptive and indifferent to modifying their customers’ mortgages.

        Long Island State Senator Brian X. Foley (D - Blue Point), who just became the new chairman of the Senate Banks Committee, will be holding hearings on this issue. Last year, when he was campaigning, he actually backed a one-year moratorium on foreclosures.

        Suffolk County and Nassau County have among the highest mortgage default rates in New York. Many homeowners are able to stop foreclosure and cure their mortgage arrears by filing Chapter 13 bankruptcy.

More from Long Island Bankruptcy Law Firm Blog

• Long Island homeowners have the highest mortgage foreclosure delinquency rate in New York state
• Long Island Has the Highest Foreclosure Rate in New York State
• Can Federal Exemptions be Used in New York Bankruptcy Filings?

Related posts:

1. Long Island Has the Highest Foreclosure Rate in New York State Written by Craig D. Robins, Esq.   Whatever benefits...
2. New Fannie Mae “Deed for Lease” Program May Be an Alternative to Foreclosure But It May Not Be the Best Choice for Many Homeowners Written by Craig D. Robins, Esq.   If you have...
3. Many New York Foreclosure Suits Are Dismissed Because They Are Defective Written by Craig D. Robins, Esq.   A fascinating article...
4. One-Fourth of All U.S. Homeowners Are Underwater. What Should These Homeowners Do? Written by Craig D. Robins, Esq.   According to a...
5. Long Island Quarterly Foreclosure Statistics — Fourth Quarter 2008 Almost half a billion dollars of Long Island mortgage loans...