New York State’s courts, frustrated by delays in thousands of foreclosure cases, are planning to speed them along in a new program that would give judges added control and require banks to send officials who have the power to alter loans to keep people in their homes.
“There will be no more excuses, no more delays,” the state’s chief judge, Jonathan Lippman, said in announcing the plan last week. “Real negotiations will take place.”
The move is the latest effort to stiffen court foreclosure procedures. In at least 19 states that have such court programs, efforts to settle foreclosure cases have often met with obstacles, including what some judges have found to be bad-faith negotiations by lenders.
The New York plan includes an unusual agreement by four banks to send representatives to court who can approve loan modifications. New York’s mortgage settlement conferences have often been paralyzed by repeated requests for information and the absence of anyone with authority from the banks.
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