Many New Yorkers are finding themselves facing foreclosure or in mortgage delinquency due to unexpected financial troubles. These include anything for unexpected disease, loss of income or even the loss of a family member, and wreak havoc on even the best managed finances. The good news is there is help available for homeowners finding themselves unable to make regular mortgage payments, or even those already facing foreclosure.

The best thing to do when you realize you may struggle to pay your monthly mortgage is to contact your financial service provider and discuss your options with them, Most banks in America have launched mortgage protection programs that enable them to restructure and reschedule your mortgage payments to accommodate periods of low income. These can involve the temporary suspension of mortgage payments for up to three months, with a restructured payment program to accommodate for lost payments.

Besides bank specific mortgage relief programs, there are several other programs that can offer counseling and mortgage assistance for New York State home owners during difficult financial times.

New York State Department of Financial Services

The Department has issued a directive to New York State mortgage providers to avail a 90-day mortgage relief to mortgage borrowers impacted by the Coronavirus. These relief measures include:

  • Forbearing mortgage payments for 90 days from their due dates;
  • Refraining from reporting late payments to credit rating agencies for 90 days;
  • Waiving late payment fees and any online payment fees for a period of 90 days; and
  • Postponing foreclosures and evictions for 90 days;

For more information, you can visit the Department of Financial Services’ website, or contact them directly at (800) 342-3736.

Sustainable Neighborhoods

Sustainable Neighborhoods LLC, a Community Development Financial Institution (CDFI), develops innovative affordable lending products for low- and moderate-income families to assist them in keeping their homes and sustaining their wealth. In addition to being certified by the U.S. Treasury as a CDFI, Sustainable Neighborhoods is an exempt mortgage banker licensed by the New York State Department of Financial Services. They target families and home owners who are not generally served by traditional capital or banking outlets. They provide mortgage assistance, counseling and general financial aid to those struggling in the current economy. Sustainable Neighborhoods is a wholly-owned subsidiary of the Center for NYC Neighborhoods, a New York 501(c)(3) not-for-profit corporation that promotes and protects affordable home ownership in New York. You ca learn more about what they offer on their website, or you can contact them directly at 1-855-HOME-456.

Homeowner’s Hope Hotline

Homeowners facing potential foreclosure can also call the HOPE NOW toll-free at hotline at 1-888-995-HOPE (1-888-995-4673) or visit their website at www.995hope.org for more information.  This hotline forms part of the HUD approved counselors, investors and mortgage lenders that can provide valuable information and resources to help prevent foreclosure. This is a federal and nation-wide program that can assist any American home owner facing foreclosure or forbearance. They also provide additional information of foreclosure assistance scams that may cause homeowners additional distress.