New York passed a bill enacting a temporary COVID-19 related foreclosure moratorium. Under the bill, a mortgage lender or servicer may not initiate a foreclosure action until May 1, 2021 if the borrower has submitted a Hardship Declaration to the mortgage lender or servicer. The court must also stay a foreclosure action or foreclosure sale until May 1, 2021 if the borrower submits a Hardship Declaration to the mortgage lender or servicer, or to the court.
The bill also requires a mortgage lender or servicer to:
- Provide a Hardship Declaration form to the borrower; and
- File an affidavit with the court demonstrating the manner in which a Hardship Declaration form was served on the borrower, and attesting that the mortgage lender or servicer has not received a signed Hardship Declaration from the borrower.
In addition the bill prohibits a mortgage lender or servicer from:
- Discriminating against a prospective borrower because the borrower has been granted a stay of mortgage foreclosure proceedings, tax foreclosure proceedings or of tax lien sales, or because the borrower is currently in arrears and has submitted a Hardship Declaration with the lender or servicer; or
- Negatively reporting to a credit-reporting agency the fact that a borrower has been granted a stay of mortgage foreclosure proceedings, tax foreclosure proceedings or tax lien sales; or the fact that a borrower is in arrears and has submitted a Hardship Declaration with the lender or servicer.
The bill does not apply to non-residential real property or to properties listed on the statewide vacant and abandoned property electronic registry.
The temporary foreclosure moratorium and related requirements expire May 1, 2021.
See the New York Assembly website for the full text of the Statutes:
https://assembly.state.ny.us/leg/?default_fld=&leg_video=&bn=S09114&term=2019&Summary=Y&Text=Y
