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Getting Help with Mortgage in New York

New York is one of the most populated and attractive places in the United States with so many attractions, different ethnic groups and awesome places to live. Due to this, there is a high demand for homes and housing and this has made it highly expensive.

Purchasing a home is a huge investment and not something that a lot of people will be able to pay for all at a go. This is where financing comes in and it is usually referred to as a mortgage.

What is Mortgage?

A mortgage is a loan borrowed specifically to finance the purchase of a home or real estate property. It is usually offered by mortgage banks, credit unions or financial institutions based on agreed upon conditions and terms and usually with an initial down payment. You can read further about this here.

With a mortgage, the lending institution fully pays for the property after the applicant has made a down payment, which is a certain percentage of the total amount of the property, and signed every necessary document. The remaining amount will be spread over a number of years and paid back with the accrued interest in monthly installment. The amount of money you pay upfront as down payment will impact your financing and mortgage repayment, The higher it is, the lower repayment you need to make and vice versa.

Mortgages are secured loans meaning they are taken against the value of a collateral which in this case is the property purchased. If there is a default in repaying your loan, the lender reserves the right to take over the property. This is called foreclosure.

A foreclosure is the process by which a lender or creditor legally takes control of a home or property, evicting the owner for not meeting up with the agreed repayments on the loan. The lender can then sell off the property to recoup their money.

There are several reasons why a person may not be able to meet up to payment obligations that may result in a foreclosure. These include:

Negative Equity

This is when the value of a property falls making the homeowner pay more on the mortgage than what the property is worth. Another term commonly used to describe this is being “underwater”. In this case, the options available for the homeowner is usually to sell the house or refinance.

Interest Rates

In acquiring a mortgage, there is the option of getting a prime mortgage or a subprime mortgage. While prime mortgages are given to high-quality borrowers and relatively enjoy a low interest, subprime ones are offered to those with low credit ratings. The interest rate on this may start low but will rise over the course of repayment. This can affect how easy it will be for a borrower to repay which could in turn result in a foreclosure.

Other factors that might lead to foreclosure are circumstances such as deaths, divorce, unemployment, medical bills, etc.

No matter the reasons for which you cannot meet up with monthly payments on your home, there are several options available to help with your mortgage payment.

How to Get Help

Because New York State is a judicial foreclosure state, meaning the lender has to file a lawsuit against the borrower in court so they can enforce the lien against the property, talking to experts and lawyers such as the ones here: www.finelawoffices.com can be a good start. Another set of professionals you can reach out to is the Department of Housing and Urban Development (HUD) approved counselors.

These set of people will give you advice on steps to take to avoid going through a foreclosure. They will also help to look at different options of paying your mortgage and will contact your lender to see how things can be worked out.

In doing this, time is of the essence. Before things really get out of hand, it is best to inform your lender as soon as possible when you know you cannot make payments. With this, you, your adviser and the lender can find ways to get a solution that works for and is satisfactory for all parties involved.

Some of the options available to you include refinancing your loan. This is when your lender offers you a new loan and new interest rates or terms. You can also get refinancing from other sources like the New York State Mortgage Assistant program. This is a program that provides finance for homeowners who have experienced financial hardship and are unable to meet up with their mortgage payments. The funds provided are interest-free but you must be eligible. You can learn more in this article.

Other options could be working out a new repayment plan or a loan modification that works for you and the lender. Also, the lender may temporarily suspend your monthly payments for a period of time. This is called forbearance.


Getting the right and timely help to avoid foreclosure is important to avoid losing your home. Beware of scammers during this time so that in your bid to save your home, you do not end up losing it to con artists. This is another good reason to engage trusted experts and counselors in the process.