A05441 Summary:

BILL NO    A05441 

SAME AS    Same as S 4506

SPONSOR    Maisel (MS)

COSPNSR    Benedetto, Hoyt, Rosenthal, Reilly

MLTSPNSR   Brennan, Brook-Krasny, DelMonte, Gordon, Mayersohn, Pheffer, Sweeney,
           Weisenberg

Add S282, RP L

Permits a one-time deferral of two consecutive monthly mortgage payments for
the balance of the term of the mortgage on a residential mortgage; provides
that the mortgage term be automatically extended by the period of such deferral
and that the amount of monthly payments remain the same and not be
recalculated.

A05441 Actions:

BILL NO    A05441 

02/13/2009 referred to judiciary
01/06/2010 referred to judiciary

A05441 Votes:

A05441 Memo:

 BILL NUMBER:  A5441

 TITLE OF BILL :  An act to amend the real property law, in relation
to residential mortgage payment deferral right

 PURPOSE OR GENERAL IDEA OF BILL :  This is to address the common
problem among mortgagees who are having difficulty in making mortgage
payments. This bill will allow a party, who is not more than two
months behind on payments, the one time option to have the outstanding
payments and costs added to the back end of their mortgage thusly,
extending the mortgage by this amount, provided that they are ready,
willing, and able to make the third payment and"all future payments
for said mortgage timely.

 JUSTIFICATION :  Many times mortgagers are faced with a financial
crisis such as temporary loss of employment, rent collection problems,
or unexpected major debts which cause them to fall behind on their
mortgage payments.  If the mortgagee is more than thirty days late on
mortgage payments the lender will often require that the late payment
plus the current payment be paid immediately by certified funds. If
the payment is not made by the third month the foreclosure process
begins unless the party can make a full payment on all the moneys due
including additional bank fees.  This bill will create an opportunity
for the party to begin making mortgage payments at their current level
of payment while allowing the outstanding costs to be deferred to the
conclusion of the mortgage rather than be due at the point of debt
where the sum can often be insurmountable. This bill will greatly aid
mortgagees and will cut back on the number of foreclosure proceedings.

 PRIOR LEGISLATIVE HISTORY :

2001-2002 A.5544 (SEDDIO)
2003-2004 A.1492 (SEDDIO)
2005 A.4321 (SEDDIO)
2006 A.11827 (MAISEL) 2008 A.7805

 FISCAL IMPLICATIONS : None.

 EFFECTIVE DATE :  This act will take effect immediately.