Attorney General Andrew Cuomo, along with Attorney Generals in all 50 states, is calling for a state-wide freeze on foreclosure actions from New York banks and financial institutions.

Bankers Ignored Signs of Trouble with Foreclosures, an article in today’s New York Times, outlines the egregious mismanagement of the mortgage and foreclosure process by banks.

The destabilizing effect of foreclosure adds tremendously to the stress of New York families in a city with an 8% unemployment rate.

The problem is so bad that City Councilmember James Sanders, Jr. is speaking out (in a press release) on the devastating effects that forclosure brings on families and children. Of particular concern to the Councilman is the affect of foreclosures on the performance of New York City public schoolchildren.

“Foreclosure uproots families and devastates communities. The housing bubble was particularly egregious for the predatory actions of many banks when they made these loans.  Now they’re using new and even more unscrupulous methods, such as false affidavits, to force people out of their homes.  The greed is outrageous and needs to end today.

“Kids are far more perceptive than we often give them credit for; they know when mom and dad are under severe stress from the banks, and they feel that pressure too.  When our students are worried about where they’re going to sleep at night or where their next meal is coming from, they are understandably not as focused on their school work as they should be.  We need banks and lending institutions in New York to be good neighbors, and prevent the toll that foreclosure takes on our families and children.”