The thousands impacted by the wrath of Hurricane Sandy are facing another crisis--foreclosure as a result of the closing grace period that banks permitted on their mortgages, reported The Daily News.
Sen. Charles Schumer met with some of the victims of superstorm Sandy from New York and Long Island on Sunday, reported CBS, and insisted banks should extend their forbearance period or "payment delay period" and additionally create a flexible payment system so homeowners could avoid facing foreclosures.
The three-to six-month mortgage holiday began after the October storm, allowing victims to delay payments without additional fees, reported The Daily News. It's now entering the fifth month.
"These victims of the storms were spending all of their resources on repairing their homes and providing their families with another place to live. They simply had nothing left in the bank for mortgage payments," Schumer said in an interview with The Daily News. "For many homeowners, they are not in a better financial place then they were months ago. ... It's hard enough to rebuild without having to worry about going into foreclosure."
Congress approved $60 billion for Sandy relief, and for New York the federal aid stands at $3 billion, but because of the latest sequestration crisis, the fund is potentially at risk in the coming months if no agreement is reached.
"Some of the cruelest cuts of all are to the health program for our first responders who answered the call of duty on 9/11 and the nearly $3 billion to help those still recovering and rebuilding from Hurricane Sandy," said Sen. Kirsten Gillibrand.
According to CBS, Fannie Mae and Freddie Mac have already extended the forbearance period by an additional 90 days. Schumer urged more banks to do so also.
The sequestration calls for nearly $85 billion to be cut, damaging domestic and health care programs, among others.