Mortgage Grace Period Extended
The grace period on mortgage payments has been expanded for another three months. This additional time will allow New Yorkers affected by Hurricane Sandy to catch up on payments without having to face collection agencies or a lowered credit score.
Some New Yorkers are finding that the three-month grace period on mortgage payments offered by banks and mortgage servicers immediately following Storm Sandy is not long enough for them to get back on their feet.
At the urging of the Cuomo administration, banks and servicers will extend this period for up to another three months, for a total of six months post-storm for the following types of relief:
- Postponement of foreclosures and evictions.
- Waiver of late fees on mortgage payments.
- In some cases, based on a borrower's specific facts and circumstances, forbearance on mortgage payments where the borrower has been affected by the storm and is seeking relief.