Long Island Lawmakers Propose Mortgage Relief Plan (Patch)
The bill would allow homeowners to extend the due date of their mortgage, instead of having to make up all their missed payments in one sum.
Congresswoman Kathleen Rice, along with State Senator Todd Kaminsky and State Senate Housing Chair Brian Kavanagh, are proposing a bill that would ease the pain of paying back missed mortgage payments to financially stressed homeowners after the coronavirus pandemic has ended.
As part of the federal Coronavirus Aid, Relief and Economic Security (CARES) Act, homeowners are able to delay payments on federally backed mortgages up to 180 days in "forbearance." Gov. Andrew Cuomo also signed an executive order which grants forbearance for 90 days to homeowners. At the end of this grace period, people will have to make the missed payments while still dealing with the immediate financial effects of the pandemic.
On April 20, Kavanagh and Kaminsky introduced a bill that would give homeowners the ability to extend the life of their mortgage by however long their payments were in forbearance, which will provide immediate relief and allow people to payback lenders with less financial strain. For example, if a mortgage is scheduled to end in June 2040 and the borrower now foregoes three months of payment, the mortgage payments would be extended to September 2040.
New Alert (Patch)
