For years, many struggling new york homeowners relied on the New York State Homeowner Assistance Fund (“NY HAF”) as their best chance at avoiding foreclosure. However, as of 2026, the NY HAF fund is officially closed and is no longer taking applications, nor will it be able to service the existing wait list. As of Today, over $465 million has been distributed to almost 17,000 households using the federal pandemic- era funding. Although all of this money has been spent; other resources remain available to assist homeowners who are behind in their mortgage payments. But finding them may take some effort.
Here are five ways you can get assistance with your mortgage in 2026:
👉 click here to get the 2026 new york homeowner resource guide:
1. Stop waiting for a “new” grant program
A lot of homeowners have been waiting for “HAF 2.0”. There were several announcements made by governor Hochul about new grant money going to new york homeowners. However, most of the money is for emergency repairs through restore ($50 million); accessibility improvements ($18.8 million); and replacement of manufactured homes ($10 million). None of the grant money is for paying down delinquent mortgage payments. If you’re behind on your mortgage payments, your focus needs to switch from getting a “grant”, to working out a “modification” with your lender.
2. Take advantage of the new 2026 FHA Loss Mitigation options
If you have an FHA-insured loan; HUD has just updated its Home Retention options. Payment supplement: HUD has added a Partial Claim option that will not only bring your arrearage current; but also give you temporary reduced monthly payments for up to three years.
Standalone loan modification: HUD has allowed lenders to modify the terms of your mortgage (to extend the life of your loan to 30 or 40 years) so that your monthly payment goes down; even if you do not qualify for refinancing.
Standalone Partial Claim: this allows your lender to “carve-off” your delinquency into a zero interest subordinated lien that you do not repay until you sell your property or pay off the original mortgage.
The “Nonbank” Advantage (New NY Regulations)
There is a major regulatory shift happening right now that many homeowners are missing. In January 2026, the New York Department of Financial Services (DFS) finalized 3 NYCRR Part 120.
While the full compliance deadline is July 7, 2026, nonbank mortgage lenders (like Rocket Mortgage or Mr. Cooper) are currently in their “transition period.” This means they are already under intense scrutiny to prove they are providing “fair and equitable access” to loan modifications for low-to-moderate-income New Yorkers.
If your lender is a nonbank and is being difficult, mentioning their upcoming obligations under the New York Community Reinvestment Act (CRA) can be powerful leverage. They are now subject to much greater state oversight than ever before.
4. Find an “anchor” free counselor
Never try to handle a foreclosure case on your own and never pay someone to Help you with foreclosure prevention services. The state of New York funds a number of non-profit organizations that offer free legal and housing counseling services.
Homeowner Help NY: Go to homeownerhelpny.org to locate a HUD approved counselor in your area.
AG’s office : the NYS office of attorney general still provides funding for the Homeowner Protection Program (HOPP). These counselors can represent you when communicating with your lender’s “Loss Mitigation” department. Or 👉 click here to get the 2026 new york homeowner resource guide:
5. Submit a complete Loss Mitigation package immediately
The minute you realize you cannot afford to make the next month’s payment; call your servicer and ask them to send you a Loss Mitigation package. Why? When you complete the entire application, Federal Dual Tracking laws usually prohibit your lender from starting or continuing a foreclosure proceeding while considering you for a modification. What you’ll need: two years’ worth of tax returns; thirty days’ worth of paycheck stubs; and a hardship Letter detailing why you became delinquent (layoff, illness, etc.).
Get the hardship letter that’s helped hundreds of homeowners explain their situation to the bank:
Summary checklist for 2026:
Don’t search for NY HAF: It’s closed. Start focusing on Loss Mitigation.
Call your servicer: ask for a modifcation appplication.
Find a HUD counselor: they will cost you nothing and prevent you from making expensive mistakes.
Check your loan type: (FHA, VA, fannie / freddie): each have specific relief programs that must be followed.
You can still save your home in 2026 without HAF. All you need to do is move quickly before your lender files a lis pendens (the formal beginning of foreclosure proceedings).
Disclaimer: This post is for informational purposes only and does not constitute legal or financial advice. Consult with a qualified housing counselor or attorney regarding your specific situation.
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