ALBANY, N.Y. (AP) — New York’s attorney general has announced a new small loan program intended to help homeowners at risk of foreclosure.
Eric Schneiderman announced the new program on Thursday. Called the New York State Mortgage Assistance Program, the initiative is starting on Long Island this September before being opened up to the entire state in October.
Schneiderman says the loans of up to $40,000 are intended to help homeowners pay tax liens, second or third mortgages, or back mortgage payments that have prevented them from being able to refinance their homes.
The Democrat says often homeowners can’t modify their mortgage to avoid foreclosure because of a relatively small outstanding debt.
The initiative is patterned after a similar program in New York City.