As the COVID-19 pandemic continues to fade, many legal cases that were temporarily postponed by the Courts, such as foreclosures, are resuming and going forward in litigation. During the COVID-19 era, foreclosure cases, along with evictions, were stayed by executive order. That meant that if a lawsuit had been filed to foreclose a property, the Courts did not move the case forward, and simply “froze” the case, pending the end of the pandemic.
Recently, with the waning of COVID-19 and the realization that we will never be completely free of the virus, the Courts in New York have lifted the stay on foreclosure matters. This means both that new foreclosure cases may be filed, and also that existing cases may continue moving through the Courts.
With the economy in recession, and home interest rates rising due to efforts to forestall inflation, many borrowers may now find themselves at risk of foreclosure. This post will discuss what to expect in a foreclosure case now that the Courts are “back to normal.” This review will assume that the property in question is residential, and is the primary residence of the homeowner. For primary residences, there are laws in place to assist homeowners, which do not necessarily apply to cases involving commercial properties or “second homes.”