New York Has Developed a New Program That Can Stop Foreclosure

There's some “good-ish” news for New Yorkers because early last week, NY Attorney General Eric T. Schneiderman announced the launch of a new New York State Mortgage Assistance Program (“NYS MAP”). This program will create loans of up to $40,000 (not more than) available to homeowners that are hanging on their last thread before foreclosure. The “good-ish” aspect stems from the ability to secure another loan to save your house, which is great don't get me wrong, however, you will be getting ANOTHER LOAN (uhm, even more debt). But then again, I guess incurring more debt is better than losing your house, am I right? Since massive debt has become a concept that's even more commercialized than McDonalds (don't you love them McMuffins?)    

Atty General Schneiderman says,

“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. 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.”

How sweet, even brings a tear to my eye.

Also from Schneiderman,

“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 which 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.”

I can sure tell you this is not a new groundbreaking discovery. Families have been losing their homes right and left since, I don't know, 2007 (when the crisis first began, remember that?). Except, funny thing here, NOW is when you want to implement a program that would help these homeowners? Seriously? Almost missed the mark there NY. But hey, even though this new program might be a little late for a lot of people, at least they're trying now, some people might be getting the help they need (for once!).

To make the process easier for homeowners to grasp and for your convenience, the Attorney General's office has created a hotline to address all sorts of questions and concerns you might have, here's the deets, “Attorney General’s office launched the website www.nysmap.org where prospective applicants can find out about the program and get connected to a HOPP lawyer or counselor. Consumers can also contact the New York Attorney General Consumer hotline at 855-HOME-456).

This policy is relatively new so, as per usual, there is no certainty of what may come with it. Nevertheless, it's a good cause which has the ultimate goal of “helping” homeowners by lending them enough money so they can keep their homes. Lastly,  I'd say keep on the lookout for further developments regarding the implementation of this policy.