New York has purchased an additional 92 mortgages on Long Island in danger of going into foreclosure in order to keep properties from becoming “zombie homes.”
Following the housing collapse and widespread robosigning of foreclosure documents, states divvied up $25 billion in settlements from mortgage companies. With its share, New York has so far spent about $10 million to buy 570 mortgages on the brink of foreclosure. About 20 percent of the time homeowners get financial counseling and the loans are modified and sold to private investors. For homeowners who are too in debt for modification to work, the state says it repairs those homes and resells them as affordable housing
