Comptroller launches new foreclosure prevention helpline.

New York City Comptroller William C. Thompson, Jr. this week launched a Foreclosure Prevention Helpline to assist New Yorkers struggling to overcome burdensome mortgage payments and threatened with foreclosure.

"Many homeowners around New York City may be facing foreclosure of their homes as a result of growing sub-prime sales in recent years," Thompson said. "While these sales have made the possibility of homeownership available to a wider range of New Yorkers, they carry with them a greater risk of default."

"This is a matter of great consequence in New York City. Like the rest of the country, we value homeownership is an important symbol of participation in the American dream. And yet in our City, homeownership rates are roughly one-half of that for the nation as a whole."

Joined by representatives from community and civic groups, Thompson announced the Helpline--at [phone]--at a news conference on the steps of City Hall. Among those expressing support are: New York ACORN, Neighborhood Housing Services of New York City, New York Mortgage Coalition, Neighborhood Economic Development Advocacy Project, and Asian Americans for Equality.

New York City has the lowest homeownership rate--33%--of all the nation's major cities, according to New York University's Furman Center for Real Estate and Urban Policy. While New York City ownership rates are low by national standards, rates among Black and Hispanic households are even lower, at 28 and 16%, respectively.

Recent data from the Neighborhood Economic Development Advocacy Project suggests that the City could surpass 15,000 foreclosure filings this year--more than double the total two years ago. Foreclosures hit minority neighborhoods the hardest, including South Jamaica, Cambria Heights, Bedford Stuyvesant, East New York and Williamsbridge.

"In neighborhoods across New York City sub-prime loans have cost families their homes and--in many cases--wiped out their life savings," said Bertha Lewis, Executive Director at New York ACORN. "That's why every homeowner with a sub-prime loan needs to get out a pen and write down the Helpline number the Comptroller is announcing today. We need to take this Helpline and make it available in neighborhoods door-to-door so borrowers in danger of losing their homes can take steps to avoid foreclosure."

"We at the Neighborhood Housing Services of New York City are very concerned about the sub-prime mortgage crisis and the rising tide of mortgage defaults here in New York City," said Sarah Gerecke, CEO of NHS. "We are doing everything we can to help New Yorkers in jeopardy as a result of these issues, and are providing home buying education that will protect thousands of other residents from the same problems. We welcome the involvement of Comptroller Thompson's office in this housing crisis."

"Asian Americans for Equality applauds the Comptroller for spearheading efforts to protect our immigrant homeowners who are victims of predatory lenders that take advantage of their cultural and language barriers," said Christopher Kui, Executive Director of AAFE. "AAFE will work with Comptroller Thompson to provide in-language financial education to ensure that families facing financial hard times do not lose their homes that they worked hard to gain."

Thompson encouraged New Yorkers to call his Helpline for assistance. Staff members will research each case and make appropriate referrals to non-profit organizations certified by the United States Department of Housing and Urban Development.

"These experts can discuss options so that you may be able to manage your mortgage payments and not lose your home," said Thompson, whose office is distributing pamphlets about the Helpline to senior centers, community boards and other community-based organization. "My office's Community Action Center has resolved thousands of problems confronting New Yorkers, and we can help you, too."

The Comptroller noted that many of the types of mortgage products have prompted less affluent New Yorkers to enter into home ownership by taking advantage of interest-only and adjustable rate loans that require little or no cash up front.

"Many of these men and women later find themselves unable to meet the terms of their loans as interest payments rise," the Comptroller said. "Lack of knowledge about the lending process has led many first-time homebuyers to mortgage not only their homes, but their very futures as well."

"The dream of homeownership is one that we all should embrace and support," the Comptroller said, "and yet we must do all that we can to ensure that New Yorkers enter into loan agreements that they can afford."

He added, "We must work to help those who discover that they cannot maintain payments on their mortgages and are at risk of foreclosure. We must give these New Yorkers another option.

"Only by protecting such persons can we ensure that the American dream of homeownership does not turn into the nightmare of foreclosure."