There are a lot of different bills floating around state and federal governments these days proposing various reprieves for subprime borrowers in danger of foreclosure. One of the most far-reaching plans is a bill being pushed by two state legislators proposing a one-year moratorium on foreclosures in New York to allow at-risk mortgage holders to remain in their homes while they work with their lenders to restructure loans.
Bills Push Moratorium on New York Foreclosures
The bill is currently being reviewed by the State Legislature and has gained wide support from both Democrats and Republicans—it currently has 71 Assembly sponsors and 19 Senate sponsors.
A host of city officials joined the original sponsors, Republican Senator Frank Padavan of Queens and Democratic Assemblyman Jim Brennan of Brooklyn, at Brooklyn Borough Hall Friday to rally support for the bill, whose most recent precedent was a 1933 law imposing a one-year moratorium on foreclosures in New York State.
“We’re not calling it a moratorium,” a Spitzer spokesman said of the bill. “But it does give borrowers a little extra time to have a conversation with their lenders.”