John M. Crane

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John M. Crane

No new foreclosures may be commenced until August 20, 2020. If you need time to pay back property taxes, bankruptcy could stall a tax foreclosure. However, governments have the right to collect property taxes and it is doubtful that a government that depends on tax collections for essential services will afford any relief to homeowners.

I Was In The Middle Of A Foreclosure Action When The COVID-19 Pandemic Began. Am I In Danger Of Losing My Home Now Or Were All Proceedings Also Put On Hold, Including Those In Motion?

All proceedings were put on hold. However, the Courts have recently reopened and, while slowly getting back to business, foreclosures cases will proceed. You should not ignore any notices and you should make sure your attorney has filed a notice of appearance or other required documents.

Is There Any Further Government Relief Being Offered During The Coronavirus Pandemic To Property Owners In New York?

Executive Order 202.28 prevents a foreclosure proceeding from moving forward where a homeowner is facing a financial hardship due to the pandemic. Homeowners should be offered loan modifications or forbearance agreements by their lenders in an attempt to keep them in their home and get their loans to become performing loans once again. However, in New York’s attempt to protect tenants, those homeowners who are not receiving rent payments from their tenants will have to prove that a tenant is not experiencing a financial hardship before the court will permit an eviction under Executive Order 202.28.

The Order basically permits a financial hardship defense to a foreclosure or eviction proceeding. In practice, if a landlord or lender is unwilling to accept a tenant or borrower’s showing of a COVID-19-related financial hardship, the landlord or lender may initiate a proceeding and the tenant or borrower will have to assert financial hardship as a defense. However, no proceeding can be initiated until the New York State Courts reopen to allow the commencement of new actions on August 20, 2020.

What Is Happening To My Homeowners Insurance, If I Am Not Paying My Mortgage?

If your lender is paying your homeowner’s insurance, they will almost definitely continue to make the payment, but if you are responsible, you should do whatever it takes to make that payment. In the case of a fire or other covered loss, if your policy is not in effect due to termination for non-payment, you will not be covered.

Once The Moratorium Is Up, Will I Have To Make All The Missed Payments At Once?

While the government has not adopted a set of rules for all lenders, it is likely that the lenders will put the missed payments on the back end of the mortgage, so if your last payment was supposed to be made in January, 2030 and you missed five months, it will now be due in July, 2030. Another option might be to offer you the option of making an extra payment each month to have you pay your mortgage off on the scheduled date.

What If I Am In A Chapter 13 Bankruptcy To Save My Home? Do I Have To Continue To Make Plan Payments? What If I Can’t Because I Lost Income Due To The COVID-19 Pandemic?

Bankruptcy is the best place to be because you are under the protection of the bankruptcy court. However, if you cannot make your plan payments, you should speak to your bankruptcy attorney and petition the court for a modification of your Chapter 13 plan.

For more information on Pending Tax Foreclosure Action Against A Home, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (212) 748-9477 today.

John M. Crane

Call Now For A Free Case Evaluation
(718) 509-6542 | (212) 748-9477 | (914) 228-2055