New York City Group Ready To Tackle Foreclosures

December 6th, 2007 | Tags: Foreclosures

Officials are beginning to worry about foreclosures. Mayor Bloomberg and others of the City Council said that $2.8 million would be set aside to start a non-profit group for the purpose of tackling foreclosure problems. This is first concrete step visible in response to the raging crisis. The nascent body will be an independent one that will be supervised by a board having representatives from lenders, community bodies, private foundations and the local city government.

The increase in foreclosures has been palpably noticeable in the low and middle neighbourhoods of the city – Brooklyn and Bronx. These two instances are just symptomatic of what is happening across the nation. People were encouraged to improve the quality of life and now they are being pushed back into the abyss of low income. Bloomberg analyses that somewhere down the line something went wrong both with lenders and borrowers.

The new organization will start operating from January 2008 and hopes to help 18,000 city residents per year. It will be tackling foreclosure matters from A to Z – preventive measures, conduction of research, training of local sub-groups and providing advice in matters relating to financial and legal counseling and referrals. The prime aim is help and not bailing out.
An allocation of $1.8 million has been funded for the new organization. New York City’s Department of Housing Preservation and Development will make a payment of $5.3 million. Private groups are also expected to make grants and all total the expectation is that $5.3 million will be available for starting operations. Bloomberg talked about the need of a national planning but Ms Quinn opined that one couldn’t go on waiting anymore. The settings up of this centre will an example of innovative thinking and independent action. Two other council members, Fidle (Democrat) and Comrie Jr. (Democrat) representing Brooklyn and Queen echoed these sentiments. There localities are two of the worst hit by foreclosures. Mr. Fidler highlighted the point that it is not just individuals who are affected but the foreclosure crisis is snowballing and taking all into its cold death-like embrace.

The new move is actually a follow up of another step that had been taken earlier – Preserve Assets and Community Equity (PACE) that had been started in the end of 2005. The City’s Commissioner Donovan and a former Deputy Mayor, Struz, were present at the meeting.

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