Owning your own home is certainly the American dream, but some individuals in New York they may have found that factors outside their control have affected their finances, making it difficult for them to pay their mortgages. However, the state recognizes this problem and has taken action to help residents seeking mortgage modifications.
Homeowners facing foreclosure in New York may be happy to hear that a no-interest loan program in the state is gaining a $100 million expansion. The expansion is funded by the State Attorney General’s office as part of a case regarding deceptive practices that was settled with the bank Goldman Sachs. It is hoped that the program will now be able to allow over 3,000 homeowners statewide pay other debts in full, so that they are able to modify their mortgages. Since the program began in 2014, $18 million worth of loans have been given out.
These loans are important, because even those who have a steady income may not be able to modify their mortgages. This may be the case if they were unable to pay their mortgage in the past, if they owe unpaid property taxes or if they owe money on a second or third mortgage lien. It is hoped that the program will free up income for these individuals to tackle these unpaid debts, so they can modify their mortgages and avoid foreclosure.
Unfortunately, many people who had previously been paying their mortgages in full and on time in the past could suddenly find themselves in a situation where they are having a hard time making ends meet, such as a major medical illness or a job loss. Missed mortgage payments are a serious issue, as they could ultimately lead to foreclosure. If an individual is facing foreclosure and doesn’t know what to do, he or she may benefit from discussing the matter with a bankruptcy professional who can help explain their debt relief options.
Source: syracuse.com, “NY has more money for homeowners facing foreclosure,” James T. Mulder, May 25, 2016