New York lawmakers are moving to boost protections for reverse-mortgage borrowers in foreclosure — after a report by The Post.
Last month, The Post broke the story about a rising tide of foreclosures on reverse mortgages, risky home equity loans made to senior citizens. This wave of foreclosures threatens to throw some of New York’s most vulnerable residents out on the street.
Now Assemblywoman Helene Weinstein (D-Brooklyn) and Sen Jeff Klein (D-Bronx/Westchester) have introduced bills aimed at providing second-mortgage holders with the same protections as first-mortgage borrowers.
There are two key changes. The first is written notification, including a notice with contact information for free nonprofit foreclosure-prevention assistance, to the borrower 90 days before the lender files a foreclosure case. In addition, the new law will mandate a settlement conference for borrower and lender to try to work out a deal under the watchful eye of a judge or court-appointed referee.