Attorney General Eric Schneiderman announced on Wednesday a $100 million expansion of efforts to provide no-interest loans to help New York families avoid foreclosure and stay in their homes.
The expansion, funded by the Attorney General’s April settlement with Goldman Sachs over the bank’s deceptive practices leading up to the financial crisis, is expected to help more than 3,000 families across the state pay off small debts that are preventing them from securing a needed mortgage modification.
A new analysis released today by the Attorney General’s Office also showed that the Mortgage Assistance Program (MAP), the first phase of these efforts, has already had a significant positive impact on families that live near a MAP loan recipient because foreclosed homes often drag down the property value of other nearby homes. According to the analysis, every $1 in loans preserves about $8.50 in property values for homeowners within 750 feet of the MAP loan recipient.
Since MAP began in late 2014, the $18 million in loans given out have already preserved $153 million in property values for nearby homeowners. The new $100 million is estimated to save an additional $722 million, after accounting for administrative program costs.
All told, these no-interest loans are expected to preserve a total of $875 million in property values for nearby homes by the time every loan has been disbursed.
MAP provides homeowners with small loans which are non-amortizing and carry no interest rate. The loans only come due upon sale of the home, refinance, death of the borrower, transfer of ownership, or mortgage maturity.
MAP, which is funded through settlements with the big banks for their roles in the housing crisis, builds on the success of the Homeowner Protection Program (HOPP). HOPP, a network of roughly 90 housing counselors and legal service providers to help at-risk homeowners across New York to avoid foreclosure, has already helped more than 60,000 New York families. Applicants for MAP loans must connect with a free HOPP counselor to begin the application process.
For more information on how to apply for MAP loans, call 855-HOME-456 or visit AGScamHelp.com.