By Yaffi Spodek
Issue of March 20, 2009 / 24 Adar 5769
Local homeowners in danger of foreclosure who can’t cope with their mortgage lenders can now avail themselves of free counseling services, thanks to New York Mortgage Advocates, a new program from Labor & Industry For Education, Inc. (LIFE).
“Our goal is to help as many people as we can,” said Elie Hecht, the program’s co-director. “Sometimes people just need someone to give them a fresh perspective on the issues and payments. We help steer people in the right direction.”
The service, based on Spruce St. in Cedarhurst, provides free counseling to people who are already in foreclosure, or are in danger of becoming in foreclosure. The mortgage counselors will also negotiate with banks on behalf of their clients.
New York Mortgage Advocates began providing these services less than three months ago, and are now being funded by a grant from the New York State Department of Housing and Urban Renewal.
Using documentation provided by their clients regarding their budgets and finances, mortgage counselors will “crunch the numbers and figure out a situation where the bank might be willing to do modification,” Hecht explained. “There are also other avenues, such as short-selling their house or personal bankruptcy, depending on the person’s situation.”
The program has been getting referrals from The Eliezer Project, which steers its clients to free services such as this one, to help them ease some of the financial burdens they bear.
“We refer clients to him [Hecht] because these services are provided gratis to the client,” said Sam Bergman, the executive director of The Eliezer Project. “He is nearby and I have confidence in him, with respect to his legal advice and with helping people re-negotiate their mortgages.”
Although the program is currently catering to residents of the Five Towns and Far Rockaway, there are plans underway to expand and open an office in Hempstead, to service a wide range of clients, beyond those in the Jewish community.
“We are the community’s best-kept secret,” Hecht said, “and I think everybody can use a little bit of counseling. Although we are limited to housing, anybody who loses a job could be affected by the ability to pay their mortgage.”
To utilize this service, please call New York Mortgage Advocates at (516) 374-4564.
More on foreclosures
The escalating number of foreclosures doesn’t only threaten people who may lose their homes; it also brings down property values and equity. Reducing home foreclosures and rebuilding homeowner wealth is key to strengthening our economy.
President Obama’s new Homeowner Affordability and Stability Plan, effective immediately, will allow families who owe more on their homes than its current appraised value to lower their interest rates. The plan will also help at-risk homeowners avoid foreclosure by reducing monthly mortgage payments. The Treasury Department has set up a website, www.financialstability.gov, that details how the programs work and whether you are eligible.
This week, the House of Representatives passed H.R. 1106, the Helping Families Save Their Homes Act. This legislation provides incentives to lenders to modify mortgages and provides safe-guards for responsible homeowners who are not covered by President Obama’s plan, but are still at risk of foreclosure.
There are a few additional resources that may be helpful:
- Hope Now is a government and industry alliance that provides free foreclosure prevention assistance from HUD-approved counseling agents. Go to www.hopenow. com or call (888) 995-4673.
- Long Island Housing Partnership –– At no cost to you, HUD-certified housing counselors can help you understand your options, organize your finances and represent you in negotiations with your lender. Go to www.lihp.org or call (631) 435-4710.
- Community Development Corporation (CDC) of Long Island specializes in affordable housing and has a foreclosure prevention expert on staff to answer your questions. Go to www.cdcli.org or call (631) 471-1215.
-- Yaffi Spodek (Source: Office of Congressman Steve Israel)
