The End Is Near For New Yorkers Living For Free. New York Foreclosure Litigation Times Drop From 48 Months To 6 Months
The end is near for New York homeowners hoping to take advantage of the state's notorious long foreclosure litigation time. New York foreclosure litigation times have dropped off dramatically in the past year.
The Empire State had an average foreclosure litigation time of 36-48 months in 2015. The average foreclosure litigation time in New York is now 6 months.
Multiple factors on the federal and state level have attributed to this drastic cut.
The End of HAMP
The Home Affordable Modification Program was launched in 2009 in answer to the financial crisis.
Economists believed that foreclosures were losing proposition for everybody involved. Lenders would face long-term losses from a foreclosed mortgage instead of negotiating more favorable terms with the homeowner. Foreclosures also drag down the value of surrounding properties by creating a cascade of lower values across the housing market.
HAMP offered financial incentives to lenders to negotiate loan reductions with at-risk homeowners. The government would pay the mortgage lenders $1,000 for every loan they modified. They would also pay lenders an annual $1,000 for every borrower who stayed current over the next three years.
The program had limited success.
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