Mortgage

More Than 14K Long Island Homeowners in Mortgage Delinquency

More Than 14K Long Island Homeowners in Mortgage Delinquency
Written by Publishing Team

(Illustration from The Real Deal)

(Illustration from The Real Deal)

Thousands of Long Islanders may have a tough road ahead as they are still behind on their mortgages and the moratorium on foreclosure is nearing its end.

Data reported by Newsday shows that 14,500 Long Islanders have defaulted on their mortgages. The report comes as the moratorium on foreclosures is set to expire on January 15, potentially putting thousands at risk of losing their homes.

The percentage of delinquent mortgages is similar across counties. In Nassau County, the 90-day late payment rate is 2.06 percent, while the 90-day late payment rate is 2.12 percent in Suffolk County. Both are a marked improvement from last year’s peak of 6.44 percent and 6.28 percent, respectively.

Still, the rates are more than double the previous pandemic figures, according to Newsday.

Despite the imminent end of the moratorium, many mortgage defaulters may still be able to avoid foreclosure. Homeowners can work with lenders or agencies on impatient plans or loan modifications. People can also take advantage of the hot housing market to sell their homes, although this can be a long and protracted uprooting process.

Homeowners can also apply for an exemption from the $539 million Homeowners Assistance Fund, a federal program that reopened for submissions on January 3. Among the aid that the fund can provide are mortgage payments, property taxes and utility bills.

New York will review applications on a first-come, first-served basis for the federal program.

Tenants in the state may not be getting additional money for rent relief anytime soon, but vital protection is still on its way. Last week, a judge ruled that the state’s Office of Temporary Assistance and Disability Assistance must reopen the rental subsidy portal for tenants’ applications.

While the program has effectively run out of money, there is an app that isolates tenants from eviction while their paperwork is processed. The statewide eviction ban ends Jan. 15.

[Newsday] Holden Walter Warner

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