By Josh Barbanel
A program to provide legal assistance to homeowners facing foreclosure in New York state has won a temporary reprieve.
Funding for more than 90 nonprofit groups that provide foreclosure-prevention services was due to expire in October. The groups had begun a lobbying campaign to get $20 million a year into the state budget.
On Wednesday, aides to New York Attorney General Eric Schneiderman said he would be able to provide $10 million in funding to keep the program going until the next state budget. The extra funds come from proceeds of settlements received by the state from litigation involving banks and mortgage servicers following the financial crisis of 2008.
In 2012, Mr. Schneiderman promised $20 million a year for five years to groups organized into a foreclosure-prevention-service network. But his commitment was due to run out by October.
Although the foreclosure crisis has waned in other states, cases have lingered in the courts in New York. There are now more than 62,000 pending foreclosures, according to state court statistics. That is more than there were in 2009, but about one-third less than the peak backlog in 2014.
State law requires lenders to provide a list of foreclosure-prevention counselors when they issue a 90-day foreclosure notice, said Meghan Faux, acting director of Legal Services NYC in Brooklyn.
Write to Josh Barbanel at email@example.com
(END) Dow Jones Newswires
March 29, 2017 16:50 ET (20:50 GMT)