Sen. Charles Schumer is calling on banks to give Sandy victims a forbearance period of at least six months to pay their mortgage.
Some banks already allow for a such a period, while others only allow ninety days.
Schumer is also asking banks with mortgage holders who were forced to deal with storm damage to work out a payment plan after the forbearance period.
“Homeowners who lost everything in the storm should get a break from the mortgage payments while they’re picking up and reassembling the pieces,” Schumer said at a press conference Sunday. “It’s hard enough to rebuild without having to worry about foreclosure.”
Sandy victims struggling to pay a mortgage can go to HUD.gov to find some helpful resources.
(Source: NBC New York)
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2 Responses
Since banks “take a bath” (i.e. lose lots of money) when they foreclose, they have always been very liberal with solvent owners who fall behind and can catch up. You don’t need the government to tell a bank to maximize its profits, they do do of their own volition.
However if someone is behind payments be cause thier financial situation has changed, postponing foreclosure helps no one. The person should probably file for chapter 7 bankruptcy and start over, and get a house suitable to their new circumstances.
When the home is seriously damaged, foreclosing helps no one. The only figure who might have an incentive to repair the home loses that incentive, and the bank is stuck with an essentially worthless property.