New York Mortgage Assistance and Foreclosure Help
Foreclosure Delay and Notice Law-
A law passed in 2009 in New York has a goal of providing foreclosure help to homeowners. The regulation requires that banks and mortgage lenders have to send a notice of foreclosure to borrowers a minimum of 90 days before the foreclosure process can begin. The intent of this notice is to help encourage families to find mortgage help before the beginning of any foreclosure proceedings. The notice also most list mortgage counselors in the area who may be able to provide mortgage and foreclosure assistance.
In addition, this new law requires that lenders provide a mandatory settlement conference for homeowners that have certain subprime loans. Many homeowners may be facing difficult economic situations, and for those homeowners who cannot pay for court fees or an attorney, the court can appoint an attorney and help reduce fees.
Another goal of the foreclosure prevention law is to ensure that lenders provide affirmative data that they have the right to go through with the foreclosure proceedings and that they have followed all applicable New York Laws.
State of New York Mortgage Agency (SONYMA)
This mortgage assistance program, also known as The Keep the Dream, will assist New York homeowners with refinancing interest only mortgages, subprime loans, or other risky adjustable rate mortgages into a safe fixed, low interest rate mortgage in an effort to prevent mortgage foreclosures.
Homeowners are able to receive mortgage help and assistance with refinancing if they can prove that they either now have, or will soon be facing, payment hardship. The Keep the Dream assistance program in particular will help homeowners if their interest rate just increased or will soon increase. Borrowers must also be more than 60 days behind on their current mortgage in order to receive mortgage help. If they are more than 60 days delinquent, assistance may be harder to receive.
Some other conditions apply, including that eligible borrowers need to have incomes that are less than 165% of the average area median income in New York City, Long Island, and the counties of Ulster, Dutchess, Orange, Westchester, Rockland and Putnam. Total household incomes of up to 125% are allowed for the other cities, counties, and areas of New York.
In addition, owners of condominiums, one- to four-family homes, and cooperatives are eligible for aid from the program. And the homeowner must also live in the home being financed to receive help.