In response to the COVID-19 outbreak, New York State enacted an emergency regulation on March 24th to assist homeowners facing financial difficulties. New York is seeing an unprecedented influx of unemployment claims while many jobs close or face a skeleton crew in order to prevent the spread of disease. The payment waiver was put into place in order to minimize the ensuing economic devastation facing so many. Specifically, financial institutions that are regulated by the state must offer forbearance on mortgage payments for 90 days for individuals affected by the coronavirus. The banks will not be permitted to assess any fees associated with late payments plus there is to be no negative late payment reporting to credit bureaus.
Banking institutions have been directed by New York State to directly to communicate the new relief option to their borrowers. For more information, one should contact their banking institution.
