| March 29, 2011

New York group seeks funds to fight foreclosure

In some parts of the country, consumers are still struggling to make their mortgage payments and avoid foreclosure. While federal aid has been allocated, these funds have failed to reach many cash-strapped Americans in need of assistance.

As a result, consumer advocates are visiting the New York state capital in Albany, New York, as part of an effort to help continue the state’s foreclosure prevention program.

The group is asking lawmakers in the state to set aside $15 million from next year’s budget to aid these struggling consumers, The Business Review reports. The money would then be used to fund the program until the enactment of the New York budget for 2012.

Kristin Lilley, a policy director at the Empire Justice Center, said the the Foreclosure Prevention Service program, which was created in 2008, is an important service for consumers, as there are few alternatives state residents can turn to for assistance.

Originally, money for this effort came from the federal stimulus. However, those dollars will run out by the end of the year. Given New York’s current economic issues, the state’s legislators may have to make budget cuts if it wants to provide funding for this program.

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