New York Passes COVID-19 Foreclosure Moratorium Law

A new law protects homeowners in New York against mortgage foreclosures, tax foreclosures, and tax lien sales until May 1, 2021.

Update: On May 3, 2021, the law discussed in this legal update was extended and homeowners can now get a foreclosure moratorium until August 31, 2021, if they file a hardship declaration with the proper party. The law also prohibits local governments from conducting a tax foreclosure or tax lien sale in New York until August 31, 2021, if the homeowner files a COVID-19 hardship declaration with the proper entity.

On December 28, 2020, New York Governor Andrew Cuomo signed the "COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020" (A11181/S09114) into law. This legislation, which is effective immediately, imposes a mortgage foreclosure moratorium for 60 days in New York. Homeowners facing hardships due to the coronavirus pandemic can get a more extended moratorium, until May 1, 2021, by filing a hardship declaration with the mortgage lender, court, foreclosing party, or its agent, as appropriate. The law also prohibits local governments from conducting a tax foreclosure or tax lien sale in New York until May 1, 2021, if the homeowner files a COVID-19 hardship declaration with the village, town, city, district, county, or other entity that conducts tax foreclosures or tax lien sales.

In addition, the law provides credit reporting protections for homeowners and an automatic renewal of property tax exemptions for some seniors and disabled homeowners.

Effective date: December 28, 2020