Monday, March 16, 2020

Coronavirus & Foreclosure: It's about to get real



With quarantine, foreclosures are next.

We are heading for a recession and possibly a depression the likes of which we haven't seen before.

Jobs are going to be lost, tenants aren't going to pay rent, mortgage payments are going to be missed and banks will have no choice but to start to pursue foreclosure.

If you are currently in a foreclosure proceeding, you should know that the courts have just rescheduled (adjourned) all foreclosure settlement conferences (CPLR 3408) for at least 45 days while they work on new orders and directives for the process.

This is going to be a mess.

If you are concerned about your mortgage, you need to act immediately and negotiate a forbearance (i.e., banks often agree to refrain from pursuing a foreclosure for a period of time for no or reduced payments) with a lender before going into default.

Get ready - the next foreclosure crisis is here.


1 comment:

  1. Andrew, you are one of the only sources addressing this important issues. While I understand that lenders are legally entitled to expect timely payments and have remedies when a borrower defaults, this is a unique situation.
    Everyone is facing financial hardships throughout this crisis, to a degree we've not seen in our lifetime. Credit cards, car payments, health insurance payments, mortgage lenders should be asked to institute solutions that are unique to the magnitude of this world-wide anomaly. The average middle class family (especially on Long Island) does not have the extraordinary savings required to weather the restrictions this pandemic imposes. I truly fear for the future you are suggesting. This is far from a situation that could have been anticipated. Thank you for consistently addressing topics that are crucial to the times.

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