BILL NO A08559
SAME AS S06656
COSPNSR Abinanti, Gottfried, Ceretto, DiPietro, McDonough, Skoufis, Jaffee,
Tedisco, Simon, Colton, Peoples-Stokes
MLTSPNSR Magee, McLaughlin, Steck
Amd S1303, RPAP L
Relates to providing notice to a homeowner whose property is being foreclosed
that they do not have to abandon the property until the day of the foreclosure
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8559
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
To require plaintiffs in mortgage foreclosure actions to inform the
homeowners or mortgagors of their rights.
SUMMARY OF PROVISIONS:
Section 1303 subdivision 3 of the real property, actions and proceedings
law is amended to require plaintiffs to notify mortgagors of their right
to stay in the home until the day of foreclosure sale and also inform
mortgagors they are entitled to a settlement conference.
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. In many instances the fore-
closing institution will commence the process and notify homeowners or
mortgagors that they must leave the property immediately. This causes
the property to become vacant and in several instances causes the prop-
erty to become unmaintained and blights the surrounding neighborhoods.
This bill will keep the home occupied by allowing mortgagors to stay in
the home until the day of the foreclosure sale and maintain the home so
the spillover costs of blight do not occur for the community and the
Immediately after the bill has become law.
STATE OF NEW YORK
2015-2016 Regular Sessions
October 30, 2015
Introduced by M. of A. KEARNS -- read once and referred to the Committee
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 legally own your property until the day of the
14 foreclosure sale and may remain there until this time. If you live in
15 the property being foreclosed upon, you are entitled to a settlement
16 conference to help you to try and save your home.
17 Please read the summons and complaint carefully. You should immediate-
18 ly contact an attorney or your local legal aid office to obtain advice
19 on how to protect yourself.
20 Sources of Information and Assistance
21 The State encourages you to become informed about your options in
22 foreclosure. In addition to seeking assistance from an attorney or legal
23 aid office, there are government agencies and non-profit organizations
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 is old law to be omitted.
A. 8559 2
1 that you may contact for information about possible options, including
2 trying to work with your lender during this process.
3 To locate an entity near you, you may call the toll-free helpline
4 maintained by the New York State Department of Financial Services at
5 (enter number) or visit the Department's website at (enter web address).
6 Foreclosure rescue scams
7 Be careful of people who approach you with offers to "save" your home.
8 There are individuals who watch for notices of foreclosure actions in
9 order to unfairly profit from a homeowner's distress. You should be
10 extremely careful about any such promises and any suggestions that you
11 pay them a fee or sign over your deed. State law requires anyone offer-
12 ing such services for profit to enter into a contract which fully
13 describes the services they will perform and fees they will charge, and
14 which prohibits them from taking any money from you until they have
15 completed all such promised services.
16 § 2. This act shall take effect immediately.