When the Roof Caves In: Foreclosures and the City

WHEN THE ROOF CAVES IN: FORECLOSURES AND THE CITY

Leaders from the battalions of New York's foreclosure-fighters came together recently to talk about bad lending, good new laws, and the kind of bailout local folks would appreciate.

By Jarrett Murphy and Karen Loew

Coming at the subprime lending and foreclosure crisis from different angles, the conversation participants gathered at the Center for New York City Neighborhoods, a stone's throw from Wall Street. Photos by Elise Kirk

The recent collapse of some of the nation's largest financial institutions is understood as the crashing of a wave set in motion by years of poor lending practices, corrupt securities schemes and lax oversight. But for thousands of New Yorkers, the wave is still crashing – as they confront untenable mortgages, potential loan defaults, and even the loss of their dwellings. In 2007, there were 15,000 foreclosure filings citywide. And experts say that in New York City, the foreclosure crisis has not even crested.

One response has been the creation of the independent nonprofit Center for New York City Neighborhoods to coordinate the many foreclosure prevention and mitigation programs. On September 25, the director of that organization sat down with City Limits Investigations Editor Jarrett Murphy and other leaders working to address the local crisis to discuss where we are and what can be done. What follows are highlights from that conversation.

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