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A08559 Summary:

A08559 Actions:

A08559 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A8559B
 
SPONSOR: Kearns

 
TITLE OF BILL:  An act to amend the real property actions and
proceedings law, in relation to providing notice to a homeowner whose
property is being foreclosed that they do not have to abandon the prop-
erty until the foreclosure process is complete
 
 
PURPOSE:
 
To require banks in mortgage foreclosure actions to notify the munici-
pality where the real property is located when the ban files a lis
pendens for the foreclosure.
 
 
SUMMARY OF PROVISIONS:
 
Section 1303 subdivision 8 of the real property, actions and proceedings
law is amended to require the foreclosure party in a foreclosure action
who is a bank to notify the municipality where the real property is
located when the bank files a lis pendens for the foreclosure.
 
 
JUSTIFICATION:
 
Due to New York State's struggling financial situation a financial
crisis emerged causing citizens to fall behind on their mortgages and in
many instances leave or abandon their homes. The reason, rationale and
motivation behind this law is that if municipalities were notified or
knew when a foreclosure was filed, the municipalities could provide
education and information to homeowners concerning the homeowners rights
with respect to the property. The municipality could actively engage
homeowners to stay in their homes and prevent the property from becoming
blighted and the surrounding neighborhoods and homes from losing signif-
icant equity and housing value.
 
 
LEGISLATIVE HISTORY:
 
New Bill
 
 
FISCAL IMPLICATIONS:
 
None
 
 
EFFECTIVE DATE:
Immediately after the bill has become law.

A08559 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         8559--B
                                                                Cal. No. 797
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                    October 30, 2015
                                       ___________
 
        Introduced  by  M. of A. KEARNS, ABINANTI, GOTTFRIED, CERETTO, DiPIETRO,
          McDONOUGH, SKOUFIS, JAFFEE, TEDISCO,  SIMON,  COLTON,  PEOPLES-STOKES,
          FAHY,  McDONALD,  CORWIN,  SANTABARBARA,  ORTIZ,  JEAN-PIERRE, HOOPER,
          ROBINSON, HYNDMAN, BICHOTTE, MOSLEY, GIGLIO,  RICHARDSON,  MAGNARELLI,
          SEPULVEDA  --  Multi-Sponsored  by  --  M. of A. GALEF, HAWLEY, MAGEE,
          McLAUGHLIN, RAMOS, STECK -- read once and referred to the Committee on
          Judiciary -- recommitted to the Committee on Judiciary  in  accordance
          with  Assembly  Rule  3, sec. 2 -- committee discharged, bill amended,
          ordered reprinted as amended and  recommitted  to  said  committee  --
          reported  from  committee,  advanced  to  a third reading, amended and
          ordered reprinted, retaining its place on the order of third reading
 
        AN ACT to amend the  real  property  actions  and  proceedings  law,  in
          relation  to  providing  notice to a homeowner whose property is being
          foreclosed that they do not have to abandon  the  property  until  the
          foreclosure process is complete
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision 3 of section 1303 of the real property  actions
     2  and  proceedings  law, as amended by chapter 507 of the laws of 2009 and
     3  as further amended by section 104 of part A of chapter 62 of the laws of
     4  2011, is amended to read as follows:
     5    3. The notice to any mortgagor required by paragraph (a)  of  subdivi-
     6  sion one of this section shall appear as follows:
     7                     Help for Homeowners in Foreclosure
     8    New  York  State  Law  requires that we send you this notice about the
     9  foreclosure process. Please read it carefully.
    10  Summons and Complaint
    11    You are in danger of losing your home. If you fail to respond  to  the
    12  summons  and  complaint  in  this  foreclosure action, you may lose your
    13  home. Please note: You have the right to remain in your home  until  you
    14  receive  a court order telling you to leave the property. This is not an
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11954-07-6
        A. 8559--B                          2
 
     1  eviction notice and you still have the right to remain in the home until
     2  a court orders you to leave. You legally remain the  owner  of  and  are
     3  responsible  for  the  property  until the property is sold by you or by
     4  order  of the court at the conclusion of this foreclosure action. If you
     5  live in the property you have a right  to  a  settlement  conference  in
     6  court  at  which  you can try to negotiate a loan modification that will
     7  permit you to keep your home.
     8    Please read the summons and complaint carefully. You should immediate-
     9  ly contact an attorney or your local legal aid office to  obtain  advice
    10  on how to protect yourself.
    11  Sources of Information and Assistance
    12    The  State  encourages  you  to  become informed about your options in
    13  foreclosure. In addition to seeking assistance from an attorney or legal
    14  aid office, there are government agencies and  non-profit  organizations
    15  that  you  may contact for information about possible options, including
    16  trying to work with your lender during this process.
    17    To locate an entity near you, you  may  call  the  toll-free  helpline
    18  maintained  by  the  New  York State Department of Financial Services at
    19  (enter number) or visit the Department's website at (enter web address).
    20  Foreclosure rescue scams
    21    Be careful of people who approach you with offers to "save" your home.
    22  There are individuals who watch for notices of  foreclosure  actions  in
    23  order  to  unfairly  profit  from  a homeowner's distress. You should be
    24  extremely careful about any such promises and any suggestions  that  you
    25  pay  them a fee or sign over your deed. State law requires anyone offer-
    26  ing such services for profit  to  enter  into  a  contract  which  fully
    27  describes  the services they will perform and fees they will charge, and
    28  which prohibits them from taking any money  from  you  until  they  have
    29  completed all such promised services.
    30    § 2. This act shall take effect immediately.