New York State Program Helps Homeowners Avoid Foreclosure

New York is the first in the nation getting the nod to launch a fund to help homeowners avert mortgage delinquency and foreclosure.

The U.S. Treasury has approved the program that will provide up to $539-million statewide to curb default and displacement. The Homeowner Assistance Fund will accept applications beginning January 3.

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Eligible applicants can get financial assistance to catch up on missed house payments or reduce mortgage debt to make payments more affordable. The plan also allows homeowners who are unemployed to get help with up to six months of future housing payments.

The application process is being made available in several languages. More information can be found at the HAF website.

To qualify, applicants must have household incomes at or below 100 percent of the Area Median Income and be at least 20 days behind on payments on their primary residence. The assistance will come as a five-year, no-interest forgivable loan and if the homeowner remains in the property for five years, the loan will be fully forgiven.

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The state also has $125-million in funds for landlords whose tenants didn’t participate in the emergency assistance program or moved out without paying rent.

Governor Kathy Hochul’s office says an application is also in for another close to one million dollars for more assistance.

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