A08559 Summary:

BILL NOA08559A
 
SAME ASNo Same As
 
SPONSORKearns
 
COSPNSRAbinanti, 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
 
MLTSPNSRGalef, Hawley, Magee, McLaughlin, Ramos, Steck
 
Amd 1303, 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 conclusion of the foreclosure action.
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A08559 Actions:

BILL NOA08559A
 
10/30/2015referred to judiciary
01/06/2016referred to judiciary
05/17/2016amend and recommit to judiciary
05/17/2016print number 8559a
05/24/2016reported
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A08559 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8559A
 
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 property until the fore- closure process is complete   PURPOSE: 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.   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. 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 neighborhoods.   LEGISLATIVE HISTORY: New Bill   FISCAL IMPLICATIONS: None   EFFECTIVE DATE: Immediately after the bill has become law.
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A08559 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         8559--A
 
                               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 --
          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 Assem-
          bly Rule 3, sec. 2 --  committee  discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to said 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 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
    15  eviction notice and you still have the right to remain in the home until
    16  a court orders you to leave. You legally remain the the owner of and are

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11954-04-6

        A. 8559--A                          2
 
     1  responsible  for  the  property  until the property is sold by you or by
     2  order of the court at the conclusion of this foreclosure action. If  you
     3  live  in  the  property  you  have a right to a settlement conference in
     4  court  at  which  you can try to negotiate a loan modification that will
     5  permit you to keep your home.
     6    Please read the summons and complaint carefully. You should immediate-
     7  ly contact an attorney or your local legal aid office to  obtain  advice
     8  on how to protect yourself.
     9  Sources of Information and Assistance
    10    The  State  encourages  you  to  become informed about your options in
    11  foreclosure. In addition to seeking assistance from an attorney or legal
    12  aid office, there are government agencies and  non-profit  organizations
    13  that  you  may contact for information about possible options, including
    14  trying to work with your lender during this process.
    15    To locate an entity near you, you  may  call  the  toll-free  helpline
    16  maintained  by  the  New  York State Department of Financial Services at
    17  (enter number) or visit the Department's website at (enter web address).
    18  Foreclosure rescue scams
    19    Be careful of people who approach you with offers to "save" your home.
    20  There are individuals who watch for notices of  foreclosure  actions  in
    21  order  to  unfairly  profit  from  a homeowner's distress. You should be
    22  extremely careful about any such promises and any suggestions  that  you
    23  pay  them a fee or sign over your deed. State law requires anyone offer-
    24  ing such services for profit  to  enter  into  a  contract  which  fully
    25  describes  the services they will perform and fees they will charge, and
    26  which prohibits them from taking any money  from  you  until  they  have
    27  completed all such promised services.
    28    § 2. This act shall take effect immediately.
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