New York Gov. Andrew Cuomo announced the suspension of mortgage payments and foreclosures in the state during a press conference from Albany. Cuomo believes that it is a "bold but necessary decision" as the country continues to deal with the COVID-19 crisis.
"Mortgage payments will be deferred based on financial hardship, and foreclosures will be suspended or postponed for three months," according to The Real Deal. "There will be a grace period for loan modification, no negative reporting to credit bureaus and no late or online payment fees during the period.'
The 90-day waivers will be in effect for those who are not working or working part-time. The governor cautioned that this does not mean those payments won't be due at some point. However, the mortgages will be adjusted to reflect that those payments can be made at a later date.
"Tenant groups and real estate industry leaders earlier called for a suspension of foreclosures, and evictions were halted by a state administrative judge earlier this week.," according to The Real Deal. "The move stemmed from concerns that, if renters ceased to pay, landlords would not be able to make payments to their lenders."
According to the report, this period will be reassessed at the end of the first 90 days. To learn more about Cuomo's decision to suspend mortgage payments and foreclosures in NY, click here.