Schneiderman commends Cuomo, Lawsky for issuing new regulations to help New York homeowners avoid foreclosureby jmaloni
Attorney General Eric T. Schneiderman praised Gov. Andrew M. Cuomo and Benjamin M. Lawsky, superintendent of the department of financial services, this week for issuing new regulations permitting "shared appreciation" mortgage modifications in New York. Under a shared appreciation modification, a bank or mortgage servicer agrees to reduce the outstanding principal balance on a borrower's mortgage in exchange for a share of any future increase in the value of the home. For borrowers who are underwater on their mortgage, owing more than their home is worth, shared appreciation modifications can significantly improve their chances of avoiding foreclosure.
"I commend Gov. Cuomo and Commissioner Lawsky for putting forward regulations that will allow shared appreciation loan modifications to aid struggling New York homeowners who are still fighting to stay in their homes," Schneiderman said. "When used carefully, shared appreciation modifications are an important tool in the effort stem the foreclosure crisis. This is a vital part of our collective effort to maximize opportunities to keep New York families in their homes."
The regulations for shared appreciation modifications that were issued are available here.