NY AG Eric Schneiderman announces $15 million for foreclosure relief

New York, NY- Attorney General Eric Schniederman announced today that $15 million from the national foreclosure settlement will go to foreclosure relief programs for New York State residents.

Shneiderman said at least $9 million would go to the state’s Foreclosure Prevention Program, which will help residents pay for foreclosure attorneys and other legal services. The remaining $6 million will go to community renewal programs and non-profit housing organizations.

“We have an obligation to provide assistance to the struggling homeowners across the state facing foreclosure, and this portion of the national mortgage settlement will ensure that families in New York State have the legal services they deserve to fight wrongful foreclosure,” Schneiderman said.

Thousands of homeowners face wrongful foreclosure, but many are unable to afford a foreclosure attorney, who is capable of challenging a bank eviction.

Schneiderman was instrumental in obtaining the foreclosure settlement and his diligence paid off. The country’s largest banks agreed to settle investigations into their improper handling of mortgage documents by paying $25 billion, which was divided among the different states.

Some states have said they would use the foreclosure settlement to bridge their budget gaps instead of allotting funds to programs that help troubled homeowners pay for foreclosure lawyers and revitalizing communities hit hard by the housing crisis.

Although the settlement will help some troubled homeowners, some felt as though the settlement was not large enough and allowed the nation’s largest banks off the hook for any criminal wrongdoing.