Extending Help to Homeowners Impacted by COVID-19

In New York city, Mayor Bill DE Blasio became the last city official to call for a rent freeze, joining Brooklyn and Manhattan counties presidents Eric Adams and Gale Brewer, who previously introduced the “Renter’s Choice” plan to demand that New York homeowners who give tenants the option to apply their cash security deposit directly toward next month’s rent. That proposal stipulates that tenants who opt for that program would have 30 days to replace the money and would be given the option to replace the deposits with low-cost insurance for a few dollars per month. De Blasio compared the impact the virus has had in the city to the Great Depression, saying that “it is time to focus on the needs of tenants, letting tenants use their security deposit to pay their rent.” He also asked that the state put a temporary moratorium on evictions, delaying two months after the crisis.

90-day rent relief bill for New Yorkers

Meanwhile, State Senator Michael Gianaris (D-Queens) says he will introduce a 90-day rent relief bill for New Yorkers. On March 20, Mayor Bill De Blasio said he would “immediately” pursue the idea of ​​a rent moratorium in New York City. His statement was made on Brian Lehrer’s show in response to a question from a caller. He said trying to build the hospital’s capacity was his first priority, but helping people to have funds to pay for food and medicine was very close. On Thursday, April 30, De Blasio called for a freeze on the rent. “The rent freeze makes a lot of sense to me given what people are going through. The Rent Guidelines Board needs to see the entirety of what tenants are living. It’s overwhelming, unprecedented, the only thing in comparison is the Great Depression.” de Blasio said. The mayor went on to say that although both tenants and smaller landlords are suffering due to the financial consequences of the COVID-19 health crisis, he believes a rent freeze is the “balanced approach.”

New York State

On Thursday, May 7, Governor Andrew Cuomo announced that he would extend the moratorium on residential and commercial evictions until August 20. He also announced that the state would provide additional relief by banning late payment fees during the eviction moratorium and allowing tenants facing financial difficulties due to COVID to use their security deposit as payment and repay their security deposit over time. “I hope it brings families deep peace of mind,” said the governor. According to Cuomo, the state will analyze the situation until August to determine the next course of action. When asked about relief for homeowners, Cuomo acknowledged that the state is working on it. “The landlord will say, ‘Okay, now the tenant doesn’t pay the rent, but I still have to pay the electric bill. I still have to pay the mortgage.’ That’s true. That’s true and we’re working on getting help from banks for homeowners too, “Cuomo said. “There are programs that the federal government is doing and the state is doing to make sure those banks also get help so they don’t have to do foreclosures so we can stop homeowners’ foreclosures.” Cuomo went on to say, “We are also helping homeowners, but on a human level I don’t want to see people and their children being evicted at this time through no fault of their own.” On March 20, Cuomo announced a “bold” but “necessary” action by offering 90-day relief on mortgage payments for those facing financial difficulties, that is, those who have lost their jobs or are now working. only part time due to coronavirus crisis.

Failure to make Mortgage Payments and Your Credit

Making a mortgage payment can be one of the main stressors,” said Cuomo. “Eliminating that stress factor for 90 days, I think it will be of great help. Again, we will re-evaluate as the situation progresses whether [the measure] will be extended or not.” Failure to make these payments will not have a negative effect on your credit, Cuomo said. There will also be a grace period for loan modification. Although, Cuomo said, the state is not exempting people from their mortgage payments, but is adjusting the mortgage to include those payments in the future. Additionally, there will be no late fees or online payments and foreclosures will be postponed or suspended during this time period. Meanwhile, on March 15, the Administrative Judge of the New York State Unified Courts, Lawrence Marks, issued a memorandum in par