A new foreclosure prevention fund will provide mortgage relief to New York City homeowners. The Mortgage Assistance Program (MAP) is a loan fund that the Center for New York City Neighborhoods (CNYCN) and the New York City Department of Housing Preservation and Development (HPD) are jointly developing. Initially over $10 million in funding will be made available to the program, and a homeowner can receive a loan of up to $25,000. The goal of the program is to help people get back on track with their housing payments and avoid a foreclosure.
It is a nonprofit organization created to address the foreclosure, housing, and mortgage crisis in New York City and the local community. The non-profit CNYCN coordinates citywide programming among nonprofit partners and charities that are involved in providing free legal services in New York, housing and foreclosure counseling, consumer education, and debt reduction and elimination program to those families and individuals who are at risk of losing their homes to foreclosure.
The bottom line is that the Mortgage Assistance Program (MAP) is a service that was created to help keep households who are considered high risk in their homes and to either prevent or stop a foreclosure. Various government agencies, businesses, and non-profits are participating. For example, New York City will commit $5M of city funds and is seeking to raise additional funds from its local partners. They are hoping to provide at minimum $10 million towards the loan program. While all homeowners who need help can apply, preference for the loans will be given to those neighborhoods most affected by the NYC foreclosure crisis and people from the hardest hit areas are most likely to receive financial aid.
There are some conditions that need to be met, and the terms will vary. MAP loans will be provided for qualified homeowners in amounts of up to $25,000. The exact details will be based on several factors that are discussed when an application is approved. These mortgage loan funds will help thousands of New Yorkers get into, or return to, affordable mortgages so they can stay in their homes over the long term.
The loans can be used for various housing expenses, including principal reduction (or required down-payment on non-MHA modifications), second lien buy-downs, or the funds can be used for payment of mortgage arrears or missed payments.
The MAP loans will focus on low to moderate income borrowers. In addition, a legal services provider or housing counselor must conduct an assessment of the borrower’s financial circumstances and personal situation and determine eligibility for the MAP funds based on HPD approved underwriting criteria.
The program is not meant to be a charity program, and the housing counselor or legal services provider must certify that if someone is provided a loan, that the borrower will have an affordable housing cost burden after receiving a MAP loan. This means that the borrower needs to be able to quickly get back on track with paying housing costs on their own.
To learn more or to apply for the New York City Mortgage Assistance Program (MAP) dial (212) 863-6300 or 311.
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