New York State Assemblyman James Skoufis announced on April 13 a campaign to encourage financial institutions to promptly finish foreclosures on vacant properties. His “bank shaming” initiative draws attention to so-called zombie properties that lower the value of neighboring properties.
“No one wants to live next door to an empty home,” Skoufis said. “But in many neighborhoods, sluggish foreclosure proceedings are causing long-term damage by allowing abandoned houses to fall into disrepair.”
A homeowner who just leaves and stops making payments on the home mortgage causes problems for the lender. Banks will often assign these bad debts to other banks. Skoufis said in a press statement the foreclosure process is doubled.
“It would be better if no one had to face foreclosure,” said Veronica Raphael, director of foreclosure prevention for the Empire Justice Center, “but when default does happen, it’s critical that people understand their rights and that banks behave responsibly.”
