New York Attorney General Eric Schneiderman is expanding the Mortgage Assistance Program which has helped many homeowners with small debts keep their homes, as reported by the New York Post. As prices of luxury condos in New York City rise and the wealthy are able to secure leverage to make extravagant real estate purchases, those who earn a modest living face losing their homes because of debts of just $20, 000. The devastation caused by Hurricane Sandy last year caused many homeowners to pay for of pocket what the insurance companies wouldn’t cover, and the result for many was a large amount of debt, that may render them without a home if they cannot pay it.
“No hardworking family should lose their home because of a small debt, ” Schneiderman said. Those who are having trouble making ends meet can apply for an interest-free, deferred payment MAP loan of up to $40, 000. These loans have a fast approval rate of less then 30 days. Attorney General Schneiderman is funneling $20 million from the 2012 National Mortgage Settlement to New York State MAP loans.