Foreclosures put on hold
Foreclosure Credit: iStock
Some Long Islanders who are delinquent on their mortgages could get a little relief in the aftermath of Tropical Storm Irene.
Borrowers whose houses were damaged so much that they must be replaced or reconstructed will get a 90-day moratorium on foreclosure if their loans are insured by the Federal Housing Administration. Also, the agency won’t start foreclosure proceedings on borrowers who are 90 days late. The clock started Aug. 31, when President Barack Obama declared the state a disaster area.
Borrowers will have to provide proof of damage, which could be insurance or inspection reports.
The moratorium is among several federal initiatives that are triggered when the president declares an area a disaster zone.
It’s not clear how many Long Islanders will be affected. But out of 34,666 FHA mortgages on Long Island, 1,267 are in the foreclosure process and 2,678 of them are 90 days past due but not yet in foreclosure, an FHA spokesman said.
