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State funds more grants to address subprime crisis

Mon, Sep 15th 2008 12:00 am
ALBANY (AP) - Gov. David Paterson says $4.175 million in state grants has been awarded to nonprofit agencies to help address the subprime-mortgage crisis.

The money, for home-ownership assistance and foreclosure counseling, advocacy and legal services, follows $1.765 million announced in July.

Lawmakers and Paterson approved $25 million for the Subprime Foreclosure Prevention Program in this year's budget. Legislation also gave New Yorkers an extra 90 days to work to save their homes from foreclosure, added to a typical 440-day foreclosure process in the state.

Officials report 16,025 foreclosure filings in the second quarter, up 62 percent from a year earlier, pushed by borrowers marginally qualified to meet payments when adjustable-rate loans increase.