Federal Funds Available to Help Homeowners in Foreclosure

Federal Funds Available to Help Homeowners in ForeclosureHomeowners facing foreclosure who are either behind on their mortgages, their property taxes or other housing related expenses can receive up to $50,000 in financial assistance through New York State’s recently approved Homeowners Assistance Fund. The State of New York has received $539 million dollars in financial assistance for homeowners pursuant to the American Rescue Plan Act. On December 2, 2021 the United States Treasury approved the implementation of a plan in the State of New York with regard to the distribution of $539 million dollars to homeowners facing financial difficulties and foreclosure.

Under the American Rescue Plan Act, households must have experienced a financial hardship caused by the covid-19 pandemic and earn at or below 150% of the median income in their area. Governor Hochul is in the process of unveiling an outreach campaign targeted to homeowner’s at risk of foreclosure. Although applications are currently not available they will be available in the near future.

539 Million Is Not Enough

Kristen Keef, the senior attorney for the Empire Justice Center has recently stated “I think everyone generally thinks $539 million will not be enough in cash assistance for homeowners”. Kristen Keef has indicated there are between 400 thousand and 500 thousand New York homeowners who are behind on their mortgage payments. From September 29th through October 11, 2021 the delinquency rate among homeowners in New York State was over 13%. The delinquency rate is higher among black and Latino homeowners. It is estimated that up to 35% of black homeowners were late on their mortgage payments. This is a rate 5 times higher than the rate for white homeowner’s that have a delinquency rate of approximately 7%. The delinquency rate for Latino homeowners has been approximately 16%.

The last prior peak delinquency rate in New York State was in 2012 when 8.3 percent of mortgage payments were more than 30 days behind. Ms. Keef went on to state “obviously they were using different data back then and different methodology, potentially than today, but I think suffice it to say that the delinquency rate is much higher today than when we thought it was really awful in 2009, following the subprime mortgage lending crisis and great recession. Ms. Keef has indicated the $539 million dollars that is available will fall far short of being able to help all of the people in need of assistance.

schlissel-headshotThe law office of Schlissel Decorpo, LLP is available to help homeowners facing foreclosure, in foreclosure and facing other financial problems that have put their homes at risk of being lost. We can be reached at 800-344-6431 or by email at info@sdnylaw.com

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