BILL NO A05275
SAME AS SAME AS S02958
SPONSOR Wright
COSPNSR
MLTSPNSR
Add S1392, RPAP L
Establishes a one year moratorium on actions to foreclose a mortgage.
BILL NUMBER:A5275
TITLE OF BILL: An act to amend the real property actions and
proceedings law, in relation to establishing a one year moratorium on
actions to foreclose a mortgage
PURPOSE: To enact a one year moratorium on foreclosures in New York
State.
SUMMARY OF PROVISIONS: Provides for a one year moratorium on
foreclosures, provided that the homeowner abides by the good faith
agreement made with the bank or mortgage holder.
JUSTIFICATION: Foreclosures have reached an all time high during the
current economic recession. According to Realty Trac, Inc., there have
been more than 54,000 homes in foreclosure over the past four years
statewide. Today, one in ten residential mortgages in New York City is
seriously delinquent Queens County has. among the highest percentages
of seriously delinquent mortgages in New York City. Foreclosures
create a vicious cycle of unemployment, deterioration of property
values and economic activity in the community, and requires additional
financial assistance from state and local government for a variety of
services.
While the economy is slowly improving, it is imperative that
responsible homeowners who make a good faith effort to pay their
mortgages during times of unemployment have the opportunity to
continue to own their homes. This legislation would impose a one year
moratorium on foreclosures, provided that the homeowner maintains the
mortgage payment agreed to as a result of negotiations with the bank
or other mortgage holder. This will allow the hemorrhaging of
foreclosures to cease while the economy recovers over the next year.
This will allow New Yorkers to secure employment and get their
finances back on track, which in turn will assist in stabilizing our
state's economy.
LEGISLATIVE HISTORY: New Bill
FISCAL IMPLICATIONS: None.
LOCAL FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: Immediately.
S T A T E O F N E W Y O R K
________________________________________________________________________
5275
2013-2014 Regular Sessions
I N A S S E M B L Y
February 22, 2013
___________
Introduced by M. of A. WRIGHT -- read once and referred to the Committee
on Judiciary
AN ACT to amend the real property actions and proceedings law, in
relation to establishing a one year moratorium on actions to foreclose
a mortgage
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. The real property actions and proceedings law is amended by
2 adding a new section 1392 to read as follows:
3 S 1392. MORATORIUM ON ACTIONS TO FORECLOSE A MORTGAGE. 1. BEGINNING ON
4 THE EFFECTIVE DATE OF THIS SECTION AND ENDING ONE YEAR AFTER SUCH DATE,
5 NO ACTION TO FORECLOSE A MORTGAGE ON REAL PROPERTY LOCATED IN THIS STATE
6 SHALL BE BROUGHT PURSUANT TO THIS ARTICLE IN ANY COURT IN THIS STATE.
7 2. ANY MORTGAGOR IN THIS STATE WHO OWNS PROPERTY IN THIS STATE THAT
8 WOULD OTHERWISE BE SUBJECT TO AN ACTION TO FORECLOSE SUCH MORTGAGE
9 PURSUANT TO THIS ARTICLE SHALL ENTER INTO GOOD FAITH NEGOTIATIONS WITH
10 THE MORTGAGEE OF SUCH MORTGAGE TO NEGOTIATE TERMS FOR REPAYMENT OF THE
11 LOAN SECURED BY SUCH MORTGAGE. UPON AGREEMENT OF SUCH TERMS, SUCH MORT-
12 GAGOR SHALL MAKE PAYMENTS TO SUCH MORTGAGEE ACCORDING TO SUCH AGREEMENT.
13 FAILURE BY SUCH MORTGAGOR TO MAKE PAYMENTS PURSUANT TO SUCH AGREEMENT
14 SHALL CONSTITUTE A WAIVER BY SUCH MORTGAGOR OF THE MORATORIUM
15 PROTECTIONS SET FORTH IN SUBDIVISION ONE OF THIS SECTION.
16 S 2. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08330-01-3
