In arrears? There’s a loan for that
Last December, struggling Bronx homeowner Maria Theresa Narvaez (left, in front of her home) left the office of NYC Legal ServicesBronx shocked and in tears.
Narvaez wasn’t crying from the stress of foreclosure, which had haunted her all year. This time, the Bronx grandmother wept in relief. She had received a $21,000 loan from a new program created by state Attorney General Eric Schneiderman — enough money to pay off the arrears on her mortgage, and keep three generations of her family in their home.
Even as prices for luxury Manhattan condos reach new records, thousands of ordinary New Yorkers like Narvaez risk losing modest homes over debts that average just $20,000.
Like her, many endure financial emergencies that precipitate foreclosure. For Narvaez, $50,000 worth of Superstorm Sandyrelated home repairs not covered by insurance pushed her into foreclosure, eventually prompting her to call 311 for free help.
The city spent $5 million from 2011 to 2014 on Mortgage Assistance Program (or MAP) loans. Now, Schneiderman is dramatically expanding the effort statewide. The AG is funneling $20 million from the 2012 National Mortgage Settlement to New York state MAP loans. The program started in hardhit areas including the Bronx and Long Island last fall, and is expected to help 600 households during an 18month run.
“No hardworking family should lose their home because of a small debt,” Schneiderman told The Post.
New Yorkers who own their primary residence and have fallen on hard times, and who can demonstrate an ability to afford the payments, are eligible for an interestfree, deferred payment MAP loan of up to $40,000.
Narvaez has already made her January payment and is setting aside funds for February.
Administered by an affiliate of the Center for NYC Neighborhoods, the loans have a rapid approval process of less than 30 days. The center’s executive director, Christie Peale, said MAP loans are helping reinstate affordable first mortgages, and to settle second liens that are obstructing first mortgage modifications.