NY using $1 million for foreclosure prevention

AP News
Posted: Jan 13, 2012 10:38 AM
NY using $1 million for foreclosure prevention

Attorney General Eric Schneiderman says his office will use $1 million from a settlement to fund legal help for New York homeowners in foreclosure or facing an imminent threat.

The attorney general's office is seeking bids from non-profit legal services to provide thousands of homeowners with legal expertise to avoid falling prey to unscrupulous mortgage servicers or foreclosure mill law firms filing fabricated or "robo-signed" documents.

According to the office, an average of one in 10 mortgages is at risk of foreclosure statewide.

He says the money comes from New York's $22 million share of a 2006 settlement with Ameriquest Mortgage Co. after an investigation found predatory lending practices like misrepresenting mortgage terms, excessive origination fees and inflating appraisals.