New Eviction and Mortgage Laws

As courts around the state of New York begin to reopen, they are worried about the public health risks that may come with an influx of cases, especially those pertaining to eviction proceedings. As he continues to lift restrictions on various regions of the state, NYS legislature has also made modifications to a few laws related to residential evictions and mortgages.

New York regulated institutions shall make applications for a forbearance period of 180 days, with the option for another 180 days. The forbearance can be dated back to March 17, 2020, and it will apply to forbearance on any residential mortgage for anyone who is facing financial hardship. This is a modification of previous language, where the financial hardship no longer must be a direct effect of the COVID-19 pandemic. Moreover, the period of loan can be extended for the length of forbearance and any late fees as a result will be waived.

Secondly, the language directly related to COVID-19 has been altered to a more generalized to “state disaster emergency declared pursuant to executive order 202 of 2020”, potentially increasing the order’s applicability to future events.

Lastly, landlords are no longer required to present a signed affidavit claiming that their tenants are/are not facing financial hardship when conducting eviction proceedings. Do you have questions about how these modifications or the reopening of the courts will affect you? Call us today at (718) 554-6445.