BROOKLYN, New York – U.S. Rep. Edolphus “Ed” Towns (NY-10), Chairman of the Committee on Oversight and Government Reform, held a community workshop today at Pratt Institute in Fort Greene, Brooklyn for Bedford Stuyvesant and Fort Greene homeowners.  Various agencies were on hand to provide information about the foreclosure process and how to identify mortgage rescue scams. Participants included District Attorney Charles J. Hynes, Pratt Area Community Council, Bridge Street Development Corp, Chicago Partners, Brooklyn Legal Services Corporation A, Brooklyn Bar Association Volunteer Lawyers Project, Inc., Bridge Street Development Corp, and JP Morgan Chase & Co.

The workshop comes at a critical time for Brooklyn’s homeowners.  Last year, 5,067 foreclosure filings (i.e. default notices, auction sale notices and bank repossessions) swept across Brooklyn, leaving many borrowers with poor credit ratings and few options to save their homes.  Reports show that Bedford-Stuyvesant was among the hardest hit, ranking third in Brooklyn for the number of foreclosure filings.  By the first quarter of this year, the number of Fort Green homes going into foreclosure skyrocketed to 64% of last year’s number.

“Many people facing foreclosure are often too embarrassed or too afraid to ask for help,” said Rep. Towns.  “They need to know that a lot of foreclosure situations can be turned around with the right information, intervention, and resources. Too often, people get the wrong help or fall prey to deed scams, which not only devastates families but entire communities.”

Recent New York State Labor Department figures reveal a soaring unemployment rate at 9% – the highest level in over decade – making it harder for homeowners to keep up with their mortgage payments. In many cases, homeowners scramble for alternatives and are met with dire consequences –mortgage rescue scams, which choke their chances of keeping their home.  Schemes like lease-buybacks, equity stripping, equity skimming and bogus consulting services are common, according to the District Attorney’s Office mortgage fraud experts who discussed during the workshop various rescue scams that ambush residents.  The experts contend that these scams heap exorbitant costs on the homeowners and, in the worst cases, force residents out of their homes.

“Now, more than ever, homeowners must be vigilant against these fraudulent schemes which target people with poor credit ratings, lackluster employments histories and those with homes in foreclosure,” said District Attorney Hynes.  “Predators prey upon innocent people who don’t know the warning signs to look out for.  My new Mortgage Fraud Unit, created to fight this insidious crime, is taking calls every day from victims who need our help.”

Mortgage market specialists and HUD-approved counselors were also available to residents who sought assistance with an array of mortgage-related problems.  The experts said that identifying the appropriate resource is crucial to surviving and preventing foreclosure.  They also explained how to identify the mortgage holder and the nuts and bolts of the loan modification process. Using a sample foreclosure case, the facilitators walked residents through a loan modification or workout plan, emphasizing the importance of every step.

“Most people don’t understand the foreclosure process, the type of loan they received, and that there are agencies out there to help them get back on track” said Bonita Dowling, a homeowner counselor with the Pratt Area Community Council. “We want them to know that they have resources and services available to them.”

“It is critically important that we arm homeowners with the tools to protect their most valuable asset, their home,” said Rhonda A. Lewis, the president and chief executive officer at Bridge Street Development Corp. “Brooklyn has one of the highest foreclosure rates in the City, and Bridge Street Development Corporation is working to reverse that trend.” 

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