Foreclosures must be curbed in Hudson Valley

With the unemployment rate dipping and some other signs of an economy recovery apparent, people might assume that one of the main causes of the great recession — the housing crisis — is behind us.

But, as a revealing story in the Poughkeepsie Journal showed last week, that is far from the case.

Initial filings by lenders that could lead to foreclosures are at about the same pace this year as during the beginning of the recession, according to Dutchess County Clerk records. That total could hit 1,600 this year. That doesn’t mean foreclosure necessarily will occur — in some cases, deals can be worked out with banks and “short sales” can enable houses to be sold for less than the loan. But the situation is still dire and solutions haven’t kept apace.

While New York has taken steps beyond many other states to give homeowners a better chance to stay in their homes, the country’s largest financial institutions should have been forced to make many concessions before they were bailed out by taxpayers during the height of the recession. Of course, many homeowners created their own trouble by buying houses they simply could not afford. And underemployment and the high cost of living in the area also have not helped matters.

But keep in mind the housing crisis occurred after massive financial institutions used dubious — if not illegal — practices to repackage mortgages to mask risks to investors, causing a chain of events that spurred the collapse. Continued pressure must be put on banks to renegotiate with homeowners trapped in loans they no longer can afford to pay back. And communities have to implore a slew of strategies to ensure foreclosed and vacant homes don’t become a plight in their area.

For instance, lenders should be held accountable for the upkeep of properties soon after they are abandoned — not at the end of what can be lengthy foreclosure proceedings. Communities suffer greatly when there are rows of “for sale” signs on streets with properties falling into disrepair.

What’s more, more communities should consider starting land banks so they can buy unwanted properties and see that the land goes to better use.

Finally, people should realize that help is available. Both the state Attorney General’s office and, more locally, Hudson River Housing, have programs that could be of assistance — or at least point people in the right direction. People shouldn’t be ashamed to seek help if they need it. Finding ways to reduce the number of foreclosures is unquestionably in the community’s best interest.

Help available online

To find out more about getting help to avoid foreclosure, go to
http://www.aghomehelp.com/
http://www.hudsonriverhousing.org/foreclosure.html