Subprime Foreclosure Prevention Services

The 2008 NYS Budget includes $25 million to help homeowners in NYS, who entered into a subprime or unconventional mortgage, by providing counseling and legal services. A program is being developed and will be administered by the NYS Housing Trust Fund Corporation (HTFC) / Division of Housing and Community Renewal (DHCR), in consultation with the NYS Banking Department and the Office of Court Administration.

The Program will make grants available to not-for-profit companies statewide to provide financial counseling, mediation, legal representation, negotiation, and other support services to borrowers who face default or foreclosure. Collaborative proposals by multiple not-for-profit organizations are strongly encouraged to achieve coverage of all necessary services in an efficient manner that decreases duplication and maximizes the impact of public resources.

Funding will also be available to provide credit counseling and homeownership assistance training and support for housing counselors, mediators and lawyers who are assisting residents with subprime or unconventional mortgages.

HTFC, with the assistance of NYS Banking Department, Office of Court Administration, and SONYMA, has developed a continuous open window RFP for not-for-profits seeking funds under the Program. Proposals for funding will be accepted continuously until all program funds have been disbursed.

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