AP
June 20, 2008
ALBANY - New York state is creating a 90-day safety period for homeowners snared in the national subprime-mortgage crisis so they can better understand their options.
The law will also criminalize some of the loan practices that have already contributed to the loss of more than 50,000 homes in the state.
Gov. Paterson and legislative leaders yesterday agreed to create the waiting period to let homeowners meet with lenders and get information on how best to cope with their debt. The time will be added to the state's usual 440-day foreclosure process, the nation's longest.
But the legislation won't include a moratorium on foreclosures sought by advocates for homeowners and by the Assembly's Democratic majority. Paterson said such a move would simply allow owners to stay a little longer in homes they'd eventually lose.
The state estimates another 38,000 homes could face foreclosure this year. One of the hardest hit areas is Queens.
"This is really, really a devastating problem," Paterson said.
