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New York Lawmakers Agree to Extend Foreclosure Protections

Posted by Melvin Monachan | Jun 28, 2021 | 0 Comments

Just as the Emergency Eviction and Foreclosure Prevention Act of 2020 and the COVID-19 Emergency Protect Our Small Businesses Act of 2021 were set to expire, New York lawmakers agreed to extend these protections until the end of August. This news comes just weeks after Governor Cuomo signed the 2022 budget bill, which included a substantial amount of rent relief.

What Does this Extension Mean for You

Under these extensions, New York lawmakers have put a continued pause on residential and commercial evictions, foreclosure proceedings, credit discrimination, and negative credit reporting related to the pandemic until the end of August 2021.

Residential Evictions

Suppose you have been suffering from COVID-related hardships. In that case, you cannot be evicted from your residence until after August 31, 2021, if you submit a hardship declaration or another document explaining the basis of the hardship. Landlords can still evict tenants who do not submit hardship declarations or create risks of safety or health to other tenants.

Residential Foreclosures

Homeowners or landlords who own ten or fewer residential dwellings can file hardship declarations with the foreclosing party to prevent a foreclosure proceeding.

Commercial Evictions and Foreclosures

These extensions apply to businesses with 50 or fewer employees who can demonstrate a financial hardship due to COVID-19. Just as residential tenants, commercial tenants need to submit a hardship declaration or another document that explains the basis of the hardship. In addition, there will be no commercial foreclosure proceedings until after August 31.

Other Circumstances

Furthermore, the emergency acts' extension also prohibits local governments from enacting tax lien sales or tax foreclosures, but you still need to make payments to the locality. Additionally, lending institutions are not allowed to discriminate against property owners applying for credit because the property owner was granted a stay of foreclosure proceedings or is in arrears but has filed a hardship declaration with the lender.

How a New York Real Estate Attorney Can Help

Now that New York lawmakers have extended these emergency acts, you must apply to take part in their relief. A New York real estate attorney can help you navigate the complexities of these applications and advise you on what route is best for your residence or commercial business. They'll even fill out the hardship declarations for you.

Attorney Melvin Monachan has years of experience in New York real estate and specializes in avoiding residential and commercial foreclosure. Call 347-389-1682 today or contact us online to schedule an appointment today.

About the Author

Melvin Monachan

Melvin Monachan is the founder of The Law Office of Melvin Monachan, PLLC, a full service, real estate law firm representing individuals, investors and corporate entities in all aspects of real estate law. On the transactional side, Melvin represents purchasers and...


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