New York City Comptroller William C. Thompson, Jr. today announced that more than 1,200 individuals and families from across the tri-state region – and as far away as Florida – have called his Foreclosure Prevention Helpline to seek help to avoid losing their homes.

Thompson made the announcement as Governor Eliot Spitzer announced a $100 million refinancing initiative to offer homeowners with risky mortgages the chance to refinance and avoid potential foreclosure.

“Every day my office hears yet another story about a family facing the loss of their home,” Thompson said. “As I’ve said since announcing my Helpline in April, this problem is not disappearing anytime soon. The Governor’s new program will provide assistance by providing affordable mortgages to those families at risk of losing what is so valuable to them.”

The Comptroller this week launched Public Service Announcements as well to spread the message that help is available. In the radio and television spots, Thompson encourages New Yorkers to call his Helpline at (212) 669-4600. The spots are expected to run on WNBC/Telemundo, NY1, WABC 7, Time Warner, WCBS, CW11, Cablevision, 1010 WINS, WABC Radio, WPLJ FM, 660 WFAN, 1050, 98.7 Kiss FM, 710 WOR 1190 WLIB, WWOR, WFUV and Clear Channel radio stations.

Since its inception on April 26, the Helpline has received 1,275 calls from New Yorkers – and others from the broader tri-state region – struggling to hold onto their homes and cut costs. The Helpline links callers with United States Department of Housing and Urban Development certified counselors in specific neighborhoods. The Comptroller’s staff then monitors each case to ensure help is provided.

“This Helpline connects those in need with various organizations with an expertise in banking and housing. I encourage any homeowner confronted with swelling bills and a diminishing ability to pay to call my office,” Thompson said. “We are here to help.”

The 1,150 calls primarily have come from New York City, although staffers with Thompson’s Community Action Center have fielded inquiries from New Jersey, Connecticut and even Florida. Close to 600 cases are currently open. Most calls – about 45 percent – have come from Queens, and about 32 percent from Brooklyn, 15 percent from Staten Island, seven percent from the Bronx, and one percent from Manhattan.

Recent reports show that New York City’s foreclosure rate is not as steep as in other large urban areas, but nevertheless the subprime crisis is not subsiding and substantially affects many New York City neighborhoods.

Foreclosure auctions in New York City increased 19 percent from the second quarter of 2006 through the second quarter of this year, it was reported this month. These numbers pale in comparison to Miami and Los Angeles, where auctions jumped 146 and 202 percent.

Thompson pointed out that many callers indicate that the initially entered into Adjustable Rate Mortgage (ARM) loans with low initial payments and manageable monthly payments.

“However, when the interest rate and monthly payment changes take effect, usually within two years, the ARM interest rate can increase drastically and continue to climb by more than one percent and up to a maximum of 16.100% throughout the terms of the loans in some instances,” he said.

“As a result, monthly payments balloon hundreds of dollars, costing thousands of dollars more each year. These monthly payments simply become unmanageable and can mean that a family will lose their home.”

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