It has been widely reported that four major banks have halted foreclosures, and that the New York State Attorney General is investigating fraud in the preparation of foreclosure related court documents. The Legal Aid Society is actively involved in working with the Attorney General and the New York State Banking Department to facilitate this investigation. At this point, we have no confirmation that the banks are doing anything more than temporarily stopping the scheduling of auction sales. Foreclosure court actions are still proceeding and homeowners should respond to court papers and assume that this is a short term action. We will keep posting updates as they occur.
For assistance in a foreclosure, contact 212-577-3300 and wait for the prompt to be connected to the civil office in your borough.
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