Stay on Foreclosure Evictions due to COVID-19

07/02/20

Mortgage foreclosures in New York State have been stayed through August 20, 2020. See this article for additional information.

With that being said, many property owners who were not paying their monthly mortgage payments from April through June, will begin having to make such payments beginning in July. (Some mortgage payments are tolled through September 2020).

In any event, the time to begin paying has begun or will begin shortly. The fact that you are open for business or back to work does not necessarily mean the same income is being earned or that similar cash flow has resumed. As a result, while you may be able to request further extensions, the fear of being unable to meet your mortgage obligations is of great concern.

The law may change and further stays given, but that is unclear. What is a property owner to do?

The State has added additional restrictions for banks that are threatening or instituting foreclosures. See attached rules and regulations. This gives property owners time to reach out and arrive at an amicable resolution with their bank.

Property owners can seek the following:

1) creation of an acceptable payment schedule;

2) refinance of the debt;

3) sale of the property- whether a short sale or not; or

4) other loans to cover the mortgage.

This is critical and time sensitive, as the August 20^th deadline is rapidly approaching. Once the restrictions are lifted, the ability to exercise any of these options will decrease substantially. As a result, if you are seeking a modification of your mortgage agreement, we highly recommend that you reach out to our office, as we will make every effort to assist you in your modification process and avoid costly litigation.