A nice woman named Stephanie who is also a Certified HUD Housing Counselor brought this to my attention on my blog.
This is a quote from Governor of New York, Eliot Spitzer's website. It's a press release and you can read the full story here.
This is great news for New Yorkers who are trying to avoid foreclosure. Hopefully more states will follow in Governor Spitzer's foot steps."Keep the Dream" Refinancing Program"
"The "Keep the Dream" refinancing program is designed for borrowers who have adjustable or interest-only mortgages where the interest rate has just increased or will increase in the near future. Eligible borrowers will have to demonstrate that they have experienced a mortgage payment hardship or will experience a hardship in the near future. Borrowers who are less than 60 days behind on their mortgage payments because of a payment increase may also be eligible for the program.
Refinancing loans can be as high as $417,000. Financing will be available for up to 100% of the value of the borrower's property. Proceeds of the mortgage can be used to pay prepayment penalties, closing costs and pay off most second mortgages.
"Keep the Dream" is targeted for low-, moderate- and middle-income homeowners. Eligible borrowers can have incomes of up to 165% of the area median income in New York City, Long Island and the counties of Dutchess, Orange, Ulster, Westchester, Rockland and Putnam, and up to 125% of the area median income for the remainder of New York State.
These income ceilings will range from $58,120 in Allegany County to $82,870 in Albany County to $93,720 in New York City to $158,560 in Rockland County. Lenders in New York State will begin to offer SONYMA's "Keep the Dream" mortgages starting September 4, 2007. "