New York State Buying 400 Mortgages With Plans To Modify Loan Terms For Struggling Homeowners
New York State is buying the mortgages of 400 homeowners facing foreclosure. Homeowners will get a chance for relief under the state’s $7.6 million Community Restoration Fund. Local nonprofits will also work with the borrowers on modifying mortgage amounts. In addition, the plan calls to give homeowners terms so they can keep their homes.
SONYMA and non-profit New Jersey Community Capital completed the purchase of the 398 non-performing mortgage notes. Funding for the initiative also came from settlement funds paid to New York State by Morgan Stanley for their role in the national mortgage crisis.
The state will renovate and resell any properties that are already vacant.
Governor Cuomo said:
Every New Yorker deserves a safe place to call home. This program gives New Yorkers at risk of losing the American Dream the opportunity to get back on track and to make necessary repairs – helping to preserve their homes and their neighborhoods.
This is CRF’s first attempt at buying non-performing mortgage notes. The State of New York Mortgage Agency, a subsidiary of Homes and Community Renewal, will administer the program with funds allocated by Albany.
Governor Cuomo signed the wide-ranging legislation in June 2016 to combat the blight brought on by foreclosure. The funding comes from the New York State Homes and Community Renewal Act.
In addition, HCR Commissioner RuthAnne Visnauskas stated:
Some of these families are still struggling to pay down mortgages that were made at the height of the financial crisis. We can offer them relief and the ability to stay in their homes for the long term.