A08559 Summary:

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 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 sale.
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A08559 Actions:

10/30/2015referred to judiciary
01/06/2016referred to judiciary
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A08559 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
  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 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
                               2015-2016 Regular Sessions
                   IN ASSEMBLY
                                    October 30, 2015
        Introduced by M. of A. KEARNS -- read once and referred to the Committee
          on Judiciary
        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.
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