Mortgage Debt Collections Halt After Sandy

Many families already dealing with mortgage debt problems will be facing additional struggles as they return to survey the damage left by Hurricane Sandy. The Governor of New York has issued a state-chartered program to help mortgage borrowers affected by the storm.

Delaying Debt Troubles

Banks and mortgage service providers will be delaying foreclosures and penalty procedures for at least 90 days. This means that homeowners who lost or have damaged homes won’t have to worry about their prior mortgage debts for a few more weeks while they try to pick up the pieces. Some of the assistance outlined by Governor’s charter comes in the form of:

• 90 day postponement of foreclosures and evictions
• 90 day waiver of late fees on mortgage payments
• 90 day forbearance agreements on missed mortgage payments
• Waiver of interest for homes that were in the middle of refinancing during the storm
• Waiver of penalty against late payments for those in a trial mortgage modification
• Temporary grace period to withhold reporting to credit bureaus regarding late payments

Some of the loan relief programs offered by state chartered banks are Apple Savings Bank, Dime Savings Bank of Williamsburg, Emigrant Savings Bank, M&T Bank, New York Community Bank, Ridgewood Savings Bank, and Hanover Community Bank.