William C. Thompson Jr., comptroller of New York City, said that the city’s Foreclosure Prevention Helpline was able to help about 5,000 troubled homeowners avoid foreclosed VA homes, HUD and bank foreclosures.
Thompson said that his office started the Foreclosure Prevention Helpline on April 26, 2007 with the intention to help thousands of individuals and families who are in danger of losing their properties to foreclosures. Since then, nearly 5,000 sought the helpline assistance.
Thompson said that during these trying times, families who are struggling to pay their monthly mortgages should be given help. He has been working to help residents of New York City obtain the financial skills crucial to avoiding the threat of foreclosures.
The Helpline has handled 4,815 calls from distressed homeowners. As a result, 2,614 cases were opened. In Queens, 865 cases were opened or 33.09 percent, 689 or 26.36 percent in Brooklyn, 476 or 18.21 percent in Bronx, 162 or 06.20 percent in Staten Island and 47 or 01.80 percent in Manhattan. The Helpline also handled 375 or 14.34 percent cases outside the city.
The Helpline concept involves linking callers with housing counselors certified by the U.S. Department of Housing and Urban Development (HUD). Also, members of the Community Action Center of Thompson’s office received comprehensive training to allow them to handle repossession cases and expertly monitor each foreclosure case to make sure that it is provided with necessary help.
Meanwhile, Thompson published the Foreclosure Prevention Guide that provides pertinent information about mortgage loans, how to protect distressed properties from foreclosures and counseling services to avoid repossession.
New York City saw an increase in the number of foreclosure filings last month. In July, about 2,517 households were in some kind of foreclosure proceedings, representing a 15 percent rise compared with June figures and July the previous year.
Industry analysts said that the jump in foreclosure activity in the city follows a brief rate reduction as a result of the 90-day grace period given to troubled homeowners before the start of the foreclosure process. They said that the law did not stop the foreclosure process, only delayed what is inevitable.
Queens is the borough leader in terms of high foreclosure rate, with a total of 939 last month, representing an 11 percent rise from June and 1 percent from the previous year.
Industry analysts expect more foreclosure increases as default notices in the city hit 2,183 last month.
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