New York State Foreclosure Prevention
New York State agencies are working together to help homeowners who are facing foreclosure through a coalition known as HALT (Halt Abusive Lending Transactions). The CPB and other members of HALT are spreading the message that many homeowners can avoid foreclosure and not lose their homes if they take action now.
As part of the effort to assist homeowners with risky mortgages, the State of New York Mortgage Agency (SONYMA) is offering a new program to help homeowners refinance their current mortgages with 30-year or 40-year, fixed-rate mortgages at competitive interest rates (see below).
The New York State Banking Department has also launched a campaign designed to encourage homeowners who are behind on their mortgage payments or threatened with foreclosure to seek help from their lenders, loan servicers and nonprofit housing counselors. Information and resources for homeowners who may be behind on their mortgages or facing foreclosure can be accessed at the Banking Department’s website.
Mortgage Fraud Task Force
Mortgage Fraud Task Force and the Office of the Attorney General use the many different tools at its disposal to combat mortgage fraud and predatory lending to protect New Yorkers. The Criminal Prosecutions Bureau investigates and prosecutes criminal mortgage fraud. The Civil Rights Bureau investigates predatory lending practices to prevent corrupt brokers and lenders from targeting and preying on communities.
Contact Task Force by phone: 1-800-771-7755
Home Equity Theft Prevention Act
As of February 1, 2007, certain sales of homes that are in foreclosure or default are now governed by a New York State law under the Home Equity Theft Prevention Act. If you are planning to sell a home that is in foreclosure or default, you should be aware of your rights under the Act, and know what to expect from a legitimate buyer.
If your sale is protected by the law, and your buyer fails to fulfill any of the requirements listed below you may be able to void or legally cancel the contract you have with the buyer and the sale, even after it has been signed and executed. You may also be able to sue the buyer to recover any damages.
If the sale you are considering falls under the Act (see right), the Banking Department recommends that you not enter into any agreement without first calling the Banking Department’s Consumer Helpline at 1-877- BANK-NYS (1-877-226-5697). Helpline staff can give you information about your rights, options and other resources you should consider.
Keep the Dream Mortgage Refinancing Program
Keep the Dream is a new program offered by the State of New York Mortgage Agency (SONYMA) designed to help eligible New York households with certain high-risk mortgages avoid possible foreclosure. The program enables families with adjustable rate, interest-only or other unconventional mortgages to refinance with the help of SONYMA and obtain a 30-year or 40-year fixed-rate mortgage at competitive interest rates. The program will prevent foreclosure with affordable and predictable monthly payments for the full term of the mortgage and remove the threat of losing their home.
Homeownership counseling is mandatory for homeowners who receive refinancing loans from SONYMA’s Keep the Dream Program.
New York non-profit organizations can become participating Counseling Agencies if they have been certified by HUD or certified by DHCR as a participating Neighborhood Preservation Corporation (NPC) or a Rural Preservation Corporation (RPC).
Borrowers are eligible if they can demonstrate that they have experienced a mortgage payment hardship or will face foreclosure in the near future. Generally, the program will help borrowers with adjustable rate or interest-only mortgages where the interest rate has just increased or will increase in the near future. Borrowers may also be eligible if they are less than 60 days behind on their mortgage payments because of higher payments due to an interest rate reset.
Eligible borrowers can have incomes up to 165% of the Area Median Income in New York City, Long Island and the counties of Dutchess, Orange, Ulster, Westchester, Rockland and Putnam and up to 125% of the Area Median Income for the rest of New York State.
Proceeds of the mortgage can be used to pay prepayment penalties, closing costs and pay off most second mortgages. However, proceeds cannot be used to repay other debt or expenses.
Related posts:
- New Jersey Foreclosure Assistance
- Ohio Foreclosure Assistance
- Massachusetts Foreclosure Assistance
- Pennsylvania Foreclosure Assistance
- Florida Foreclosure Assistance
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