“New York state has asked banks to offer homeowners who were allowed to skip mortgage payments in the wake of Superstorm Sandy a relaxed repayment schedule, instead of immediate lump-sum repayments.
The Department of Financial Services is reviewing whether banks have delivered on a promise not to start foreclosure proceedings due to late payments in cases where homeowners were heavily affected by the late October storm.
“Many New Yorkers were hit hard by Superstorm Sandy and couldn’t pay their bills due to lost income, home repair expenses, or relocation costs, so banks offered relief to homeowners in the form of forbearance on mortgage payments,” Cuomo said. …
“A homeowner who could come up with three months in mortgage payments all at once probably didn’t need forbearance in the first place,” he said. “Everyone else needs more time to repay.”