To: Mayor Bloomberg & the 2013 NYC Mayoral Candidates

Tell the Mayor to stop letting the big banks drain millions from New York City

Tell the Mayor to stop letting the big banks drain millions from New York City

I demand that New York City break the budget busting cycle of home foreclosures by only doing business with banks that will provide timely and sustainable loan modifications with principal reductions for underwater homeowners.

Why is this important?

Since 2008, foreclosed properties have cost New York City an estimated $76 million in lost property-tax revenue directly, $1.6 billion in lost property-tax revenue from neighboring properties, and $133 million in additional city-costs – totaling more than $1.8 billion in revenue the city is losing because of foreclosures and their direct effects, all while leaving countless families homeless and depressing home values in neighborhoods across the city.

And the crisis is far from over as 1 in 5 mortgages in New York City are “underwater,” meaning that the homeowners owe more money on their homes than their homes are currently worth. Underwater properties are an obstacle to the recovery of the housing market and the economy in general because they create a self-perpetuating cycle of decline.

At a time of budget cuts for our schools, housing and for the homeless, the City of New York can use its spending power to compel the banks to help keep New York families in their homes while shoring up the city’s finances all at the same time.

New York City should stop doing business with banks that are costing us billions in lost revenue.

Sources:

How the Foreclosure Crisis is Costing New York City Millions: http://salsa.wiredforchange.com/o/6245/images/nycc%20how%20the%20foreclosure%20crisis%20is%20costing%20new%20york%20millions.pdf

Photo: http://commons.wikimedia.org/wiki/File:Sign_of_the_Times-Foreclosure.jpg