Gov. Eliot Spitzer has come up with a proposal he says will help homeowners facing foreclosure by requiring mortgage lenders to be part of the solution.

Spitzer told News 12 Long Island the plan would require lenders to give 60 days notice before starting foreclosure proceedings. The plan also stipulates lenders must re-negotiate mortgages with homeowners. Re-negotiated mortgages would be based on the borrower?s current income, according to Spitzer?s proposal.

?Most often it is to the mutual advantage of both parties to come to some pre-payment or alternative payment schedule that will prevent a foreclosure,? Spitzer says.

Supporters of the plan say it will slow the crisis, while others say what homeowners really need is a yearlong foreclosure moratorium. Many Long Island residents, who aren?t immune from the crisis, say they?ve seen good neighbors have to move out because of mortgage rates and foreclosures.

Spitzer?s proposal still needs legislative approval.

Read the press release on Spitzer?s foreclosure plan

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