A state program has been launched that is designed to provide small loans to residents trying to avoid foreclosure, Attorney General Eric Schneiderman announced recently.
The New York State Mortgage Assistance Program, or NYS MAP, will assist families in securing mortgage modifications. The program is an enhancement to the attorney general’s Homeowner Protection Program, which provides some borrowers free legal and housing counseling services.
It has helped more than 28,000 homeowners across the state since the launch of the program in October of 2012, according to a media release from the attorney general's office.
The roll-out of NYS MAP will occur in Long Island first because, the release said, that region has been particularly devastated by the foreclosure crisis. Applications from Long Island families will begin being processed on Sept. 15. Borrowers in the rest of the state can apply beginning Oct. 15.
“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 Schneiderman in the release. “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.”
Schneiderman’s office discovered that many families are being denied mortgage modifications as a result of small outstanding debts, the release said. Even families with reliable income streams are denied modifications due to things like a series of missed mortgage payments, delinquent second- or third-mortgage liens, or unpaid property tax bills that need to be satisfied before a first mortgage holder will grant a modification. By filling the gap for families, the NYS MAP program will empower consumers to negotiate with their mortgage holders and ultimately remain in their homes, the release said.