Assemblymember Phil Steck (D-Colonie) announced the passage of legislation in the state Assembly to address the problem of so-called ‘zombie properties’ that have been abandoned during the foreclosure process but have not yet been processed by the courts.

“Too many neighborhoods have fallen victim to the dangers posed by vacant homes and properties,” Assemblymember Steck said. “Abandoned homes can drive down real estate values and attract crime. The bills we passed today will ensure these properties are maintained, that they are processed quickly through the courts and that all of this is done in a deliberate and fair manner.”

The New York State Abandoned Property Neighborhood Relief Act of 2016 (A.6932-A) would create a statewide registry of vacant and abandoned properties that banks and other lenders would be responsible for updating. Banks would be given clear responsibility for the maintenance and upkeep of properties earlier in the process when it appears that the properties are being abandoned. The legislation also provides for an expedited processing of the backlog of abandoned properties through the court system.

Under current law, banks only have to take care of properties once the court proceedings have ended, but that can take months or even years. This bill will make sure these homes don’t fall into limbo and ensure that they never start to deteriorate and bring down the surrounding neighborhood, noted Assemblymember Steck.

Two additional bills would reform the process though which properties are foreclosed upon in the state judicial system. The first would expand the legal protection that prevents homeowners from being sued by overaggressive plaintiffs who are unable to produce actual loans or mortgages on the property in question (A.247). The other seeks to increase the utility of settlement conferences by allowing parties to come to agreements that modify the terms of the loan to allow residents to stay in their homes (A.1298).

“These measures will save us money and time in the litigation process, they’ll help people stay in their homes, and they’ll protect our neighborhoods and our children,” said Steck.