Foreclosure crisis looming in western New York, experts say

With Monroe County facing a foreclosure-action rate higher than most of New York, state and local officials gathered in downtown Rochester to inform homeowners of their rights and options.

(Democrat and Chronicle) -- Members of a panel speaking to consumers and service providers warned that the worst may be yet to come.

"We have a foreclosure crisis in this state," said Ruhi Maker, an Empire Justice Center lawyer.

Maker said New York is one year behind hard-hit states such as California and Florida. She warned of a large decline in equity and home ownership, especially among middle-class African Americans, unless the tide turns.

Lawyers from Attorney General Andrew Cuomo's office sponsored the panel and were joined by representatives from the Housing Council, Consumer Credit Counseling Services of Rochester, Empire Justice Center and the Fair Housing Enforcement Project.

Panelists urged consumers to open their bills, discuss issues with their lenders and seek help if needed. But they also warned people to avoid foreclosure-rescue scams, which pose as help.

Carlos Rodriguez, deputy attorney general, said rescue scams tell borrowers not to talk to lenders or lawyers. They then ask for money and fees and ask the homeowners to sign over their deeds.

"Tell consumers not to sign any paperwork that has to do with the property deed," Rodriguez told the Monroe County Bar Association audience.

Maker said the data from California-based RealtyTrac, which tracks foreclosures, would be worse were it not for such groups as the Housing Council, which helps stop 700 foreclosures a year in Monroe County.

She said subprime and foreclosure trends have an epicenter in African-American neighborhoods in Rochester but have spread to all parts of Monroe County. Many panelists noted that legal action has been taken against lenders who targeted African-American neighborhoods with scam loans, with hidden costs and adjustable rates.

The Housing Council works with consumers and lenders. It is sponsoring a foreclosure-avoidance seminar for consumers from 9 a.m. to 1 p.m. Saturday at the American Red Cross, 65 College Ave.