Lawmaker Helps Contain Foreclosures Homes in Brooklyn

Brooklyn was clobbered by foreclosures in 2008, with more than 5,000 of its housing units becoming foreclosure homes and about the same number of families evicted from their abodes.

Now, the number of foreclosures homes is expected to increase as the joblessness rate in the area has surpassed the 9 percent level. What exacerbates the problem is that many troubled homeowners are too afraid or too embarrassed to ask around for help.

To help distressed families and reduce foreclosures in Brooklyn, Congressman Edolphus Towns organized a foreclosure prevention session at Pratt Institute.

Towns focused first on the two Brooklyn neighborhoods with large numbers of foreclosures homes – Bedford-Stuyvesant and Fort Greene. Both of these neighborhoods are in the tenth congressional district represented by Towns.

Towns, chairperson of the New York House Committee on Oversight and Government Reform, said that the government needs to reach out to troubled homeowners and guide them to the right resources so they can avoid foreclosure.

If distressed homeowners are allowed to be taken advantage of by fake foreclosure prevention enterprises, their homes will ultimately become foreclosures homes, devastating families and neighborhoods.

Charles Hynes, district attorney of New York city, also spoke to homeowners at the session. He told participants that his newly created Mortgage Fraud Unit will take calls from homeowners who want to check if their paid foreclosure prevention counselors are legitimate or if they have been victimized by bogus loan consultants.

Hynes reiterated that fraudulent foreclosure counselors prey on homeowners who have low credit scores and weak employment histories. He added that these predatory individuals make promises that they can save houses from becoming foreclosures homes for a fee.

According to Hynes, the most commonly used tricks are lease buybacks, home equity stripping and sale of freely available information.

Rhonda Lewis, president of the Bridge Street Development Corporation, also added that Brooklyn is among the areas in New York with the biggest number of foreclosures homes. She said her organization is working to reduce the area’s foreclosure rate.

Among the participants in the workshop were JPMorgan Chase, the Pratt Community Council, Chicago Partners, Brooklyn Legal Services Corporation and Brooklyn Bar Association Volunteer Lawyers Project. At the workshop, speakers also explained the steps of loan modification and HUD-accredited counselors and mortgage loan specialists advised homeowners.

Homeowners determined to save their homes from becoming foreclosures homes are advised to call the office of Congressman Town and the offices of the Bridge Street Development and Pratt Area Community Council.

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