What Does The Mortgage Forbearance And Moratoria On Evictions And Foreclosures Executive Order Provide To Property Owners In New York?
In New York, all mortgage foreclosures are judicial foreclosures. The foreclosing lender must commence and prosecute a lawsuit. Governor Cuomo has extended the moratorium to August 20, 2020, so long as the nonpayment of the mortgage is by someone who is eligible for unemployment insurance or benefits under state or federal law or otherwise facing financial hardship due to the COVID-19 pandemic. Also, Governor Cuomo’s executive order dated March 22, 2020 bars all non-essential filings in New York Courts until further order, which is at least until August 20, 2020.
Do You Expect To See A Rise In Both Residential And Commercial Foreclosures In New York, Once The August, 2020 Moratorium Expires?
I expect to see a rise in foreclosures, bankruptcies, and suicides when this moratorium expires. While coronavirus can potentially kill, so can the depression that loss of employment and loss of one’s home can cause. I also expect to see the disappearance of downtowns and malls in some areas, unless landlords give tenants an incentive to stay and rebuild. In New York, our Governor is threatening to once again shut down all restaurants. Most of these restaurants will not survive the first shut down; another shut down will kill all but the big national chains.
Am I Entitled To A Forbearance, If I Was In Default On My Mortgage Before The CARES Act?
If you are now suffering a hardship because of the pandemic, both NYS and the CARES Act provides relief, even if you were already in default. For consumers with a federally-backed mortgage, the CARES Act provides a foreclosure moratorium of at least 60 days, starting on March 18, 2020. This includes the initiation of new foreclosures as well as the continuation of foreclosures that had already been initiated; this does not include vacant or abandoned properties. You are also provided with the right to request and receive forbearance on your mortgage payments for up to six months, with the option to extend for an additional six months, as well as the option to discontinue the forbearance at any time. During the forbearance period, servicers are prohibited from charging fees or interest beyond what the borrower would have had to pay, if they were making their payments as scheduled. The Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac, government-sponsored enterprises, to suspend foreclosures and evictions until at least August 31.
I Was Already Behind On My Mortgage Before The COVID Pandemic Began But Proceedings Had Not Yet Begun. Can My Lender Start A Foreclosure Action Against Me Now Or Will They Have To Wait Until August To Proceed?
In New York, Governor Cuomo issued a moratorium on any new foreclosure actions until August 20, 2020. The Federal government has directed Fannie Mae and Freddie Mac to suspend foreclosures and evictions until at least August 31. Anyone in jeopardy of not making their mortgage payments beginning on September 1, 2020 should consult with a bankruptcy or foreclosure defense attorney immediately.
I Have An FHA Mortgage And I Can’t Afford To Make Payments On My Mortgage Due To A Layoff Or Reduced Work As A Result Of The COVID-19 Pandemic. Is There Any Relief For Me?
The Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to suspend foreclosures and evictions until at least August 31. A homeowner also has the right to request a forbearance on their mortgage payments for up to one year, with extensions, as well as the option to discontinue the forbearance at any time. During the forbearance period, servicers may not charge fees or interest beyond what a homeowner would have paid, if they were current on their mortgage.
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