Mortgage payments, foreclosures and bankruptcies are in limbo: state court

Facing a global health crisis, New York State on Sunday halted evictions indefinitely

TRD NEW YORK /
Mar.March 16, 2020 02:12 PM
As evictions are halted, foreclosures and bankruptcy proceedings in New York State remain up in the air (Credit: iStock)

As evictions are halted, foreclosures and bankruptcy proceedings in New York State remain up in the air (Credit: iStock)

While New York State halted evictions Sunday, the fate of mortgage debt, foreclosures and bankruptcy proceedings remains in limbo.

“Everything is still being worked out,” a court spokesperson wrote in a statement to The Real Deal, in response to a question of whether the court will extend the moratorium to bankruptcies, foreclosures and mortgage payments.

It is unclear when a decision will be made on a plan to address the financial distress that will emerge if and when large swaths of commercial tenants stop paying rent.

New York Gov. Andrew Cuomo — along with the governors of Connecticut and New Jersey — announced that starting 8 p.m. on Monday, movie theaters, venues, gyms, bars and restaurants would close in an attempt to prevent further spread of the coronavirus. A loss of business for those tenants could hurt their abilities to pay rent. (Restaurants and bars will be permitted to provide customers with takeout and delivery services.)

During the moratorium, eviction notices can still be issued, but will not proceed in court during the ban.

In a memo released yesterday afternoon, New York State’s top administrative judge, Lawrence Malks, suspended all eviction proceedings until further notice. The memo specified that courts other than the Supreme Court will remain open for civil matters, for “essential applications as the courts allow.”

The uncertainty over what will happen when renters and commercial tenants are unable to make payments comes as the global pandemic intensifies. At 950, New York’s number of confirmed cases is the highest in the nation as of March 16.

Earlier in March, the Italian government introduced a moratorium on mortgage and other debt payments during the emergency to help consumers and businesses cope. High debt loads may pose a major risk to real estate firms and other businesses in the event of a prolonged crisis.


Related Articles

arrow_forward_ios
The drop occurred after a record 6.6 million Americans filed for unemployment benefits last week. (Credit: photo by Victor J. Blue/Getty Images; iStock)

Early April sees 15% drop in rent-paying nationwide: report

Homeowners are halting mortgage payments as forbearance rates surge. (Credit: iStock)

Mortgage forbearance surged on April 1: report

Industrial brokers say coronavirus is hurting but not destroying interest in their properties. (Credit: iStock)

Boom’s over, but industrial brokers keep busy

Silverstein Properties CEO Marty Burger and a microscopic view of Covid-19 (Credit: Ilya S. Savenok/Getty Images, CDC)

“We can’t be everybody’s bank”: Marty Burger on how Silverstein is working with tenants and his Covid-19 recovery

Assemblyman Jeffrey Dinowitz, Senator Brad Hoylman and Senator Liz Krueger (Credit: Dinowitz via NY Assembly, Hoylman via Scott Heins/Getty Images, Kruger via NY Senate)

New York pols want to extend eviction moratorium

WeWork CEO Sandeep Mathrani and Softbank CEO Masayoshi Son (Mathrani by Neilson Barnard/Getty Images; Son by Tomohiro Ohsumi/Getty Images)

WeWork sues SoftBank for scrapping $3B bailout

Wesley Edens’s Fortress Investment Group picked up a mortgage bond portfolio for a steal (Credit: Drew Angerer/Getty Images, iStock)

Sharks circle as mortgage lenders shed portfolios at steep discounts

Tonight on TRD Talks: Maintaining multifamily in a tumultuous time

Tonight on TRD Talks: Maintaining multifamily in a tumultuous time

arrow_forward_ios
Loading...