The government of New York is taking further steps to try to stem the tide of foreclosures that still lingers in the Empire State today. New York Attorney General Eric T. Schneiderman announced the launch of the New York State Mortgage Assistance Program, or NYS MAP, which will provide targeted small loans to families with the aim of helping them avoid foreclosure.
The program is an addition to the Attorney General’s Homeowner Protection Program (HOPP) which provides free legal and housing counseling services, and has served more than 28,000 homeowners across the state since the launch of the program in October of 2012.
“For many families across New York State, receiving a small loan through this program will mean the difference between a mortgage modification and the loss of a home. It’s hard to imagine a better investment in communities and families still feeling the effects of the housing crisis,” said Attorney General Schneiderman. “We know that our Homeowner Protection Program has had real results, helping thousands of families keep their homes. I’m pleased to announce that the Mortgage Assistance Program will go even further, providing a lifeline to families still in need.”
The program is a response to what the Attorney General’s office describes as an increasing difficulty for homeowners, even homeowners that have a reliable source of income, to receive a mortgage modification because of smaller outstanding debts.
The loans will are designed to allow households to pay off debts that may be standing in the way of securing a mortgage modification. Eligible loan uses will include paying off arrears including mortgage payments or unpaid interests and fees; paying down second or third mortgages; satisfying property tax liens or other liens that might lead to loss of home ownership; and supplying borrowers with a “matching” fund to achieve principal reduction or other beneficial first lien modification terms.
The loans are not to exceed $40,000 per borrower and in all cases, a NYS MAP Loan must result in home ownership retention at the time the loan is made in order to be approved.