NYS Democrats Consider Foreclosure Crisis

Mark Winston Griffith

NYS Democrats Consider Foreclosure Crisis

"Wait and see" is probably the best advice any one could give homeowners who are looking for political leadership in the subprime lending and foreclosure crisis in New York. But at least some New York State elected officials are beginning to stir from their long legislative sleep at the wheel.

Last week New York State Senate Democrats came out with a report and a series of proposed legislative initiatives aimed at helping New Yorkers with subprime mortgages save their homes. One key provision in a proposal announced by Senators including Jeff Klein, John Sampson, Malcolm Smith and Liz Krueger was a six month moratorium on foreclosures of subprime loans. Although the details are anything but spelled out, what this suggests is that anyone who is in default of a subprime loan in New York will have the legal watch stopped until, presumably, a solution can be worked out, or at least attempted, with the lender.

Obviously, anything resembling relief for people in danger of losing their homes is exciting. But advocates and others on the sidelines are eagerly awaiting details of the proposal. The fact that lenders can, with this proposal, voluntarily decide whether or not they want to actually participate in this initiative casts some doubt on the ultimate effectiveness of a moratorium. And even a mandatory moratorium would have to be part of a much larger set of legislative remedies to order to mean very much, but again, at least this is a start. The task now for advocates is to let Senate and Assembly leaders know what an appropriately more comprehensive set of policy responses might look like.

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Posted at 8:41 AM, May 11, 2007 in
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It is very good news that State Senate Democrats have learned of the looming foreclosure crisis. Have Senate Republicans also groked to "sub-prime" issues? Whenever the minority Democrats in the State Senate get out in front of an issue, I worry that the GOP majority will do nothing. Have GOP state senators from NYC Maltese, Golden, Padavan & Lanza noticed the problems yet? Sen. Bruno?

-NEW ORLEANS- The foreclosure crisis consists of various issues and nuances. As a fundamental matter, because mortgage creditors utilize DEBT COLLECTORS to repossess / foreclose property, IT HAS BEEN AN IGNORED FACT HOW DEBT COLLECTORS are committing all sorts of illegal acts, and mortgage creditors benefit from those acts because PROPERTIES ARE EASY TO "FLIP." Another problem creating the foreclosure crisis is unscrupulous activities of MORTGAGE SERVICERS, LIKE WELLS FARGO. On my www.lawgrace.org website I have fully discussed WELLS and FREDDIE MAC and supplied exhibits of documents throughout my site to prove my accusations. Another factor is when MORTGAGE CREDITOR'S FAIL TO PERFECT ITS LIEN & IS NOT A SECURED CREDITOR, but conceals that fact and unlawfully obstructs a person's rights through bankruptcy court. More than ever, the recent news article reported in Bloomberg: "New Orleans, Ravaged by Katrina, Hit Again by Subprime Crisis" Bloomberg - May 10, 2007, makes it crucial wider investigation into how people are being exploited & debt collectors enriched in the GULF SOUTH. CONGRESS needs to broaden its examination into the foreclosure issues. I HOPE perhaps your organization can aid them to see what's really going on! **AFTER Logging on to my site and seeing THE APPALLING manner of New Orleans judicial / political corruption to cover up mortgage & real estate fraud, you have my permission to tell my story to the public.