New York has passed a COVID-19 Emergency Eviction and Foreclosure Prevention Act.
No foreclosure action may be initiated until at least May 1, 2021 if a borrower submits a hardship declaration to the foreclosing party.
In December 2020, New York passed the COVID-19 Emergency Eviction and Foreclosure Prevention Act.
At that time, the act stopped all foreclosures of residential real property for sixty days.
Regarding foreclosures, the foreclosure can be stopped until May 1, 2021 if the borrower (mortgagor) signs and submits a hardship declaration form attesting they are experiencing hardship due to COVID-19.
Below is language taken straight from the form outlining some of the possible kinds of hardships that can be claimed.
Note that the borrower does NOT need to identify WHICH of the below hardships they are experiencing.
- Significant loss of household income during the COVID-19 pandemic.
- Increase in necessary out-of-pocket expenses related to performing essential work or related to health impacts during the COVID-19 pandemic.
- Childcare responsibilities or responsibilities to care for an elderly, disabled, or sick family member during the COVID-19 pandemic have negatively affected my ability or the ability of someone in my household to obtain meaningful employment or earn income or increased my necessary out-of-pocket expenses.
- Moving expenses and difficulty I have securing alternative housing make it a hardship for me to relocate to another residence during the COVID-19 pandemic.
- Other circumstances related to the COVID-19 pandemic have negatively affected my ability to obtain meaningful employment or earn income or have significantly reduced my household income or significantly increased my expenses.
- One or more of my tenants has defaulted on a significant amount of their rent
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