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New York Foreclosure Moratorium has Ended – Now what?

The hardship stays provided under New York’s COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 (CEEFPA) officially ended on January 15, 2022. 

How CEEFPA affected foreclosure proceedings?

The CEEFPA was the legislature’s response to protect New Yorkers affected by a financial hardship caused by the COVID-19 pandemic from the threat of immediate foreclosure or eviction. The CEEFPA provided a mandatory stay of any foreclosure or eviction proceeding in which a borrower or homeowner filed a hardship declaration with the court. 

The CEEFPA protections initially took effect on December 28, 2020, were extended by Governor Cuomo in May 2021, and were further extended by the legislature in September 2021. Despite calls for an extension of the hardship stays and protests by housing groups in Albany, the last extension expired on January 15, 2022.

CEEFPA has expired, foreclosure proceedings can now “resume in the normal course”

In response to the expiration of the hardship stay, New York’s Office of Court Administration (OCA) issued a memorandum to judges and non-judicial staff along with Administrative Order 35/22 on Monday. For the first time in almost twenty-two months since the pandemic began, the OCA stated that residential and commercial mortgage foreclosure proceedings can now “resume in the normal course.”

What does this mean for borrowers once protected by CEEFPA that are now facing foreclosure in New York?

The courts can now begin processing all active foreclosure matters. This includes:

  • Deciding motions that are fully briefed and were previously submitted to the court for a decision;
  • Scheduling oral argument or issuing briefing schedules for motions that have not yet been submitted to the court for a decision;
  • An increase in the scheduling of settlement conferences pursuant to CPLR 3408; and
  • Scheduling foreclosure sales.

Banks will be moving swiftly to get the cases back on the calendar.

Since many foreclosure matters have been stayed or stagnant since the beginning of the COVID-19 pandemic, banks will be moving swiftly to get the cases back on the calendar.

Experienced foreclosure defense attorneys can ensure the rights of homeowners in mortgage default are protected.

If you receive any notices in the mail from the courts or from the banks, it is not too late to know your options. Clair Gjertsen & Weathers PLLC help borrowers facing financial difficulties save their homes and protect them from lender abuses.  We understand the complex problems and issues faced by homeowners in mortgage default.

There are options available at every stage of a foreclosure action and only an experienced attorney in foreclosure defense can ensure that all of your rights are protected.

Clair Gjersten & Weathers PLLC has over 30 years of experience in foreclosure defense.  For additional questions regarding the foreclosure defense process, we invite you to contact Clair Gjertsen & Weathers PLLC by calling 914-472-6202. We look forward to hearing from you.

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