Park Slope homeowner 1, mortgage company 0Posted: Updated:
A Park Slope homeowner got a reprieve Wednesday when a judge ordered that she could stay in her home while she pursues a lawsuit against her lender.
Karen Smith owns a four-story building on Fiske Place. She says her mortgage was sold to another company after she received a second mortgage from her bank. Smith claims her $170,000 loan turned into almost $600,000 with new interest tacked on.
Smith's home was sent into foreclosure. She says she's not only fighting for her rights, but for the rights of other homeowners in similar situations. "It ? gives us the opportunity to fight and show that we didn't just stop paying," Smith says. "There is something calculated in the mortgage that creates people to loose."
She says if her home goes on the auction block, it will likely sell well under its $1.5 million market value.
The state Assembly passed legislation Wednesday for a one-year moratorium on foreclosures. Those in foreclosure would be given one year to work out terms of their mortgages and meet with a judge.
The state Senate and governor must sign off on the legislation for it to go into effect.