NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7871
SPONSOR: Weinstein TITLE OF BILL: An act to amend the real property actions and
proceedings law, in relation to summary action to foreclose mortgages on
vacant and abandoned residential property
PURPOSE OF BILL:
The bill would allow for an expedited procedure for abandoned property
foreclosure for residential properties. Through this process, once the
property has been deemed abandoned by the court, plaintiffs would be
authorized to move for judgment and sale after a foreclosure complaint
is filed and the time for all defendants to answer has expired.
SUMMARY OF PROVISIONS OF BILL:
The bill would create a new § 1308 to the Real Property Actions and
Proceedings Law entitled "Abandoned Property Foreclosure Summary Proce-
dure."
*Section 1308(1)(a) would define "vacant and abandoned" residential
property under the new Section as that which a mortgagee proves, through
reports, affidavits, affirmations, photographs or otherwise, to the
satisfaction of the Court, that the property is vacant and has been
abandoned. To do so, the property must fit the criteria of at least two
of the factors listed in the bill. Furthermore, property can only be
deemed vacant and abandoned if the Court finds that the property is not
occupied by a tenant pursuant to a written lease agreement entered into
prior to the foreclosure action.
*Section 1308(1)(b) lists the factors that would prevent a residential
property from being declared vacant or abandoned including: the building
is under construction or renovation, the building is occupied on a
seasonal basis, or the building is the subject of a court action such as
probate, quiet title or ownership dispute.
*Section 1308(2) describes how a plaintiff could allege in its complaint
that a property is vacant and abandoned. This would allow for bypassing
the referee process and/or settlement conference (where appropriate) at
the start of the action. Should the information regarding proof of
vacancy and abandonment arise after the initiation of the foreclosure
action, the bill lays out the method at each stage of the matter,
including for those properties defined as a home loan under RPAPL §
1304(5)(a).
*Section 1308(3) provides that a judgment of foreclosure and sale cannot
be entered if at any time the court finds that the property is not
vacant and abandoned or if the mortgagor files an answer, appearance or
other written objection that contests the status of the property as
vacant and abandoned.
*Section 1308(4) provides that should the judgment of foreclosure and
sale be denied pursuant to the court's finding that the property is not,
in fact, vacant and abandoned, then all rights and procedures available
would be restored.
*Section 1308(5) provides that the Section would not pre-empt, reduce or
limit any rights for a locality's ability to enforce laws with respect
to property maintenance.
*Section 1308(6) provides an immediate effective date.
JUSTIFICATION:
The longer an abandoned home stays in foreclosure, the greater the
chances of blight, resulting in deterioration in value to the property
itself and the neighborhood at large. The longer an abandoned or vacant
property languishes in foreclosure the more likely it will drag down the
neighborhood it is in as well, through delinquency, blight and
distressed pricing in those areas. High concentrations of vacant proper-
ties in certain parts of the State are taking a heavy toll on our towns
and communities.
This bill would apply to vacant and abandoned residential properties
pursuant to a newly articulated definition in the bill. Such property
would be deemed vacant and abandoned when a mortgagee can prove so
according to several factors listed in the bill and pursuant to court
finding. The bill would allow for bypassing of the referee stage and/or
settlement conference stage (where appropriate) of the foreclosure proc-
ess for such properties. In such cases, after a foreclosure complaint is
filed and the time for all defendants to answer has expired, the plain-
tiff would be authorized to move for judgment and sale, with the court
compelled to compute the sum due in the judgment.
LEGISLATIVE HISTORY:
New bill, 2013.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Undetermined.
EFFECTIVE DATE:
Immediately.
