Show updates...
Housing Programs & Services

Homeowners: Under COVID-19

T + T

Summary

Governor Andrew Cuomo’s Executive Orders and the Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act enacted foreclosure moratoriums for property owners during the pandemic. The Governor’s most recent Executive Order now covers commercial properties only. Two laws signed June 17th, 2020 affords qualified mortgagors in NYS the ability to apply for residential mortgage forbearance with NYS regulated financial institutions. The CARES Act covers properties with federally backed loans and made forbearance relief available to owners of these properties.

NYS Foreclosure Moratorium

Since the beginning of the pandemic, Governor Andrew Cuomo has signed Executive Orders affording residential and commercial properties protections against foreclosure.

  • Executive Order 202.8 signed March 20th, 2020
    • Enacted a foreclosure moratorium for 90 days for both residential and commercial properties.
  • Executive Order 202.28 signed May 7th, 2020 enacted a 60-day extension of the foreclosure moratorium to August 20th, 2020, which applied to both residential and commercial properties. However, Executive Order 202.48 signed July 6th, 2020 modified this moratorium extension.
    • This latest extension ONLY applies to commercial properties with owners who are eligible for:
      • Unemployment Insurance or
      • Benefits under state or federal law or
      • Otherwise facing a financial hardship due to the COVID-19 pandemic.
    • Residential properties were removed from the extension and may have protections against foreclosure due to mortgage forbearance laws that were signed June 17th, 2020. For more information on the mortgage forbearance laws, see below, Homeowners, Mortgage Relief, Non-Federally Backed Mortgages In NYS.

Federal Foreclosure Moratorium

Properties with mortgages owned by Fannie Mae, Freddie Mac, US Department of Veterans Affairs, US Department of Agriculture, US Department of Housing and Urban Development (HUD) or secured by FHA-insured Single-Family mortgages are subject to a moratorium on foreclosure until at least August 31st, 2020.

For more information, go to:

To find out the type of loan an individual has, visit official US Program,

Making Home Affordable or Mortgage Electronic Registration Systems, Inc. (MERS) ServicerID.

Foreclosure Assistance

If an individual’s loans is not covered by the foreclosure moratoriums, access foreclosure prevention assistance at https://cnycn.org/covid-19-outbreak-homeowner-resources.

Mortgage Relief

FEDERALLY BACKED MORTGAGES

Under the CARES Act, owners with federally backed mortgages have the right to request forbearance. Federal agencies that offer federally backed mortgages include:

  • US Department of Housing and Urban Development (HUD)
  • US Department of Agriculture (USDA)
  • Federal Housing Administration (FHA)
  • US Department of Veterans Affair (VA)
  • Fannie Mae
  • Freddie Mac

Forbearance can mean a lower payment amount or pausing payments altogether for up to 180 days, with the option of an extension for another 180 days. The mortgage payment will still be owed, but the servicer cannot charge additional fees, penalties or additional interest during the forbearance period.

Homeowners should contact their loan servicer if they are experiencing a financial hardship due to the pandemic. They would not need to submit additional documentation to qualify.

To find out the type of loan an individual has, visit: https://www.makinghomeaffordable.gov/get-answers/Pages/get-answers-find-out-mortgage.aspx or https://www.mers-servicerid.org/sis.

For more information, click here.

NON-FEDERALLY BACKED MORTGAGES IN NYS

On June 17th, 2020, Governor Andrew Cuomo signed two bills into law (S08243 and S08428) affording qualified mortgagors in NYS the ability to apply for residential mortgage forbearance with NYS regulated financial institutions. For mortgage payments due between March 7th and until all COVID-related restrictions on nonessential gatherings and businesses are lifted in the mortgagors’ county, the forbearance options potentially available are:

  • Extension of the term of the loan for the length of the forbearance period; or,
  • Accumulation of the mortgage arrears during the forbearance period and payable monthly for the duration of the loan; or,
  • Deferral of arrears during the forbearance period and payable as a one-time payment at the end of the loan; or,
  • Negotiation of a loan modification or any other option to meet the needs of the mortgagor.

The forbearance period can last 180 days, with an extension of an additional 180 days. Additionally, the institution cannot charge additional fees, penalties or additional interest during the forbearance period.

Prior to the laws, Governor Cuomo signed Executive Order 202.9 and the New York State Department of Financial Services issued an emergency regulation requiring that NYS regulated financial institutions provide residential mortgage forbearance on property located in New York for a period of 90 days to any individual residing in New York who demonstrates financial hardship resulting from COVID-19. If a qualified mortgagor used the 90 days as allowed in these regulations, S08428 indicates that the 90 days are part of the 180 days allowed, and the mortgagor can also request the 180 days extension.

Homeowners in NYS without federally backed mortgages should contact their loan servicer for any available forbearance options.

NYC Property Taxes

NYC property taxes are still due to the NYC Department of Finance (DOF).

DOF offers several programs to assist property owners who face hardships making their property tax payments. These include exemption programs to lower the amount of taxes owed, standard payment plan options as well as the new Property Tax and Interest Deferral (PT AID) program, for those who qualify.

For more information about other housing resources visit: https://www1.nyc.gov/site/finance/benefits/benefits.page.