A05275 Summary:

BILL NO    A05275 

SAME AS    SAME AS S02958

SPONSOR    Wright

COSPNSR    

MLTSPNSR   Perry

Add S1392, RPAP L

Establishes a one year moratorium on actions to foreclose a mortgage.
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A05275 Actions:

BILL NO    A05275 

02/22/2013 referred to judiciary
01/08/2014 referred to judiciary
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A05275 Votes:

There are no votes for this bill in this legislative session.
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A05275 Memo:

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.
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A05275 Text:

                           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
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