Like many states that are trying to both expedite judicial review of foreclosures and keep as many people in their homes as possible, New York has enacted new measures, like requiring that bank lawyers verify foreclosure paperwork and that all homeowners receive legal assistance. But a big problem keeps coming up that continues to cause delays — no one in the room actually has the authority to change a loan agreement.
That is going to change, with the state’s Chief Judge announcing that the lender must have at least one person present at the foreclosure proceedings who can make a decision then and there on adjusting the mortgage.
“There will be no more excuses, no more delays,” said Lippman. “Real negotiations will take place.”
Surprisingly, four of the nation’s largest lenders — Chase, Citigroup, Wells Fargo, and Bank of America — have all agreed to follow by this new rule.
Perhaps they are realizing that it might be better for them to modify mortgages and eventually make back their money than risk selling for a loss at a short sale or auction.
The program will begin in Queens this spring and move out across the rest of NYC and into the suburbs before eventually, if it proves successful, rolling out statewide.