LI Hotlines for home loan / foreclosure advice

LI officials offer hotlines for home loan advice

April 12, 2007, 11:04 AM EDT

GARDEN CITY, N.Y. (AP) _ Government officials and Long Island housing advocates announced efforts Thursday aimed at helping homeowners stave off foreclosure stemming from rising interest rates on so-called "subprime" home loans.

"The effects of the sub-prime lending boom are beginning to be felt across the nation, resulting in more and more delinquencies, as well as a loss of equity," said Suffolk County Executive Steve Levy.

Both Levy and his Nassau County counterpart, Tom Suozzi, announced they were establishing telephone hotlines for homeowners seeking counseling on preventing foreclosure.

"The loss of a home due to unexpected events can be financially and personally devastating," said Suozzi, who cited estimates that as many as 19,000 homeowners in Nassau and Suffolk counties could face foreclosure in the next two years.

Levy said representatives from the Long Island Housing Partnership will provide the no-cost, confidential counseling. He said in some instances, low-interest flexible loans may be available. Nassau will offer similar counseling services, and in some cases help negotiate a payment schedule with lenders, Suozzi said.

On Wednesday, the National Association of Realtors forecast that the median price for existing homes will decline for the first time since 1968 as a sales slump worsens.

With 1.8 million adjustable rate mortgages resetting to higher rates this year and next, foreclosures are expected to continue rising, according to a report issued Wednesday by Sen. Charles Schumer, chairman of the Joint Economic Committee.

Schumer told reporters hundreds of millions of dollars of new federal aid may be needed to assist homeowners.

"We'd like to do something very quickly," Schumer said. "These statistics are new and they're startling."

Rising delinquencies and defaults among borrowers have resulted in more than two dozen so-called subprime lenders going out of business, moving into bankruptcy protection or putting themselves up for sale.

Last week, civil rights groups called for a six-month moratorium on foreclosures resulting from high-risk loans given to people with shaky credit, arguing that lenders could face lawsuits if they don't help borrowers. The mortgage industry says lenders are already working to help distressed borrowers.

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Nassau hotline: (516) 571-HOME or (516) 571-4663

Suffolk hotline: 631-853-4800


Copyright 2007 Newsday Inc.

Re: LI Hotlines for home loan / foreclosure advice

Re: LI Hotlines for home loan / foreclosure advice

So, the lenders will save on foreclosure fees, buyers get to keep homes they couldn't afford in the first place and who will foot the bill? The taxpayers, of course.

Re: LI Hotlines for home loan / foreclosure advice

It says the counseling is being provided at no cost. Unless you know something I don't, it doesn't appear to affect taxpayers.

Re: LI Hotlines for home loan / foreclosure advice

First, the counselling service needs to be paid and that will be done out of taxpayers money.

Second, the article say "in some instances, low-interest flexible loans may be available." This sounds like a government bail out to me.

Re: LI Hotlines for home loan / foreclosure advice

Re: LI Hotlines for home loan / foreclosure advice

I see what you're saying.

On one hand, there are probably a bunch of people out there who weren't smart about homeownership and who rushed into it before being truly prepared.

But on the other hand, the stories I'm reading about the lenders who rake these people over the coals for a profit are astounding.

I'm not ready to lump every foreclosure into the same group and just say, too bad - this is your stupid tax.

Regardless of the factors that contributed to the situation, I think it's in everyone's best interest like Kelly said, to prevent as many foreclosures as possible.

It's possible that I have more sympathy since I'm not a homeowner yet and we've used LIHP's services and are grateful for them and the other helpful things for first time homebuyers.