Bill Text: NY A05009 | 2013-2014 | General Assembly | Introduced


Bill Title: Requires the provision of notice to mortgagors in default for thirty days or more regarding assistance and the necessity of maintaining their residences.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-01-08 - referred to judiciary [A05009 Detail]

Download: New_York-2013-A05009-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5009
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                   February 14, 2013
                                      ___________
       Introduced  by  M. of A. RYAN -- read once and referred to the Committee
         on Judiciary
       AN ACT to amend the  real  property  actions  and  proceedings  law,  in
         relation to requiring the provision of notice to mortgagors in default
         for thirty days or more
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The real property actions and proceedings law is amended by
    2  adding a new section 1304-a to read as follows:
    3    S 1304-A. NOTICE TO MORTGAGORS IN DEFAULT FOR THIRTY DAYS OR MORE.  1.
    4  WHEN  A MORTGAGOR OF RESIDENTIAL REAL PROPERTY, INCLUDING OWNER-OCCUPIED
    5  ONE-TO-FOUR-FAMILY DWELLINGS, DEFAULTS ON SUCH MORTGAGE FOR THIRTY  DAYS
    6  OR  MORE,  THE  LENDER, ASSIGNEE OR MORTGAGE LOAN SERVICER SHALL PROVIDE
    7  NOTICE TO THE MORTGAGOR REGARDING INFORMATION AND ASSISTANCE  ABOUT  THE
    8  FORECLOSURE PROCESS IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION.
    9    2. THE NOTICE REQUIRED BY THIS SECTION SHALL BE DELIVERED TO THE MORT-
   10  GAGOR  BY  REGISTERED  OR  CERTIFIED  MAIL TO THE RESIDENCE WHICH IS THE
   11  SUBJECT OF THE MORTGAGE NO LATER THAN FORTY-FIVE DAYS AFTER THE  MORTGA-
   12  GOR DEFAULTS ON HIS OR HER MORTGAGE. THE NOTICE REQUIRED BY THIS SECTION
   13  SHALL  BE  IN  BOLD, FOURTEEN-POINT TYPE AND SHALL BE PRINTED ON COLORED
   14  PAPER THAT IS OTHER THAN THE COLOR OF ANY ADDITIONAL LETTER ACCOMPANYING
   15  THE NOTICE. THE TITLE OF THE NOTICE SHALL BE  BOLD,  TWENTY-POINT  TYPE.
   16  THE NOTICE SHALL BE ON ITS OWN PAGE.
   17    3.  THE NOTICE SHALL LIST THE NAME AND CONTACT INFORMATION FOR NO LESS
   18  THAN ONE LEGAL SERVICE PROVIDER THAT IS APPROVED BY THE NEW  YORK  STATE
   19  ATTORNEY  GENERAL THAT IS LOCATED WITHIN THE COUNTY WHERE SUCH MORTGAGED
   20  RESIDENTIAL REAL PROPERTY IS LOCATED. THE NOTICE SHALL LIST THE NAME AND
   21  CONTACT INFORMATION FOR NO LESS THAN ONE HOUSING COUNSELOR LOCATED WITH-
   22  IN THE COUNTY OF THE MORTGAGOR AND APPROVED BY THE NEW YORK STATE ATTOR-
   23  NEY GENERAL.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08050-02-3
       A. 5009                             2
    1    4. THE NOTICE SHALL LIST CONTACT INFORMATION FOR THE  TOLL-FREE  FORE-
    2  CLOSURE  HELPLINE  MAINTAINED BY THE NEW YORK STATE ATTORNEY GENERAL AND
    3  THE TOLL-FREE HELPLINE MAINTAINED BY THE NEW YORK  STATE  DEPARTMENT  OF
    4  FINANCIAL SERVICES.
    5    5.  THE  NOTICE TO ANY MORTGAGOR REQUIRED BY THIS SECTION SHALL APPEAR
    6  AS FOLLOWS:
    7    "HELP FOR HOMEOWNERS IN DEFAULT ON A MORTGAGE FOR 30 DAYS OR MORE"
    8    "NEW YORK STATE LAW REQUIRES THAT WE SEND YOU THIS  NOTICE  ABOUT  THE
    9  FORECLOSURE PROCESS. PLEASE READ IT CAREFULLY.
   10    YOU  ARE  CURRENTLY  IN  DEFAULT ON YOUR MORTGAGE FOR 30 DAYS OR MORE.
   11  THIS IS NOT A FORECLOSURE NOTICE. THERE MAY BE SEVERAL WAYS IN WHICH YOU
   12  CAN SAVE YOUR HOME. WE STRONGLY ENCOURAGE YOU  TO  CONTACT  ONE  OF  THE
   13  HOUSING  COUNSELORS  OR  LOCAL  LEGAL SERVICE AGENCIES LISTED BELOW. THE
   14  CONTACT INFORMATION FOR THE TOLL-FREE HELPLINE  MAINTAINED  BY  THE  NEW
   15  YORK STATE ATTORNEY GENERAL AND THE TOLL-FREE HELPLINE MAINTAINED BY THE
   16  NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES ARE ALSO LISTED BELOW.
   17    YOU  DO  NOT  NEED  TO  WAIT UNTIL YOUR HOME HAS BEEN FORECLOSED ON TO
   18  RECEIVE HELP. NUMEROUS PROGRAMS MAY BE AVAILABLE TO YOU RIGHT NOW.  SOME
   19  MORTGAGE  ASSISTANCE  PROGRAMS  HAVE STRICT TIME LIMITS. IF YOU WAIT TOO
   20  LONG, THEN YOU MAY BECOME INELIGIBLE FOR ASSISTANCE  BY  SOME  OF  THESE
   21  PROGRAMS.  PROFESSIONAL  HOUSING COUNSELORS AND ATTORNEYS MAY BE ABLE TO
   22  ASSIST YOU IN ACCESSING THESE PROGRAMS FREE OF CHARGE.
   23    YOU HAVE THE RIGHT TO REMAIN IN YOUR HOME UNTIL A FORECLOSURE SALE  IS
   24  SCHEDULED  AND  YOUR HOUSE IS SOLD AT THE AUCTION. THIS PROCESS MAY TAKE
   25  UP TO SEVERAL YEARS. UNTIL SUCH TIME AS A  JUDGMENT  OF  FORECLOSURE  IS
   26  ENTERED  BY A JUDGE AND THE HOUSE IS SOLD AT THE FORECLOSURE AUCTION, NO
   27  ONE MAY FORCE YOU TO LEAVE YOUR HOME.  THIS  INCLUDES  THE  LENDER  THAT
   28  HOLDS YOUR MORTGAGE.
   29    UNTIL  A  JUDGMENT  OF FORECLOSURE IS ENTERED, YOU ARE RESPONSIBLE FOR
   30  THE UPKEEP OF YOUR HOME. THIS INCLUDES PAYMENT OF WATER BILLS,  PROPERTY
   31  TAXES  (UNLESS THE LENDER IS PAYING SUCH TAXES), AND UPKEEP OF THE EXTE-
   32  RIOR. IF YOU CHOOSE TO LEAVE YOUR HOME BEFORE A JUDGMENT OF  FORECLOSURE
   33  IS  RENDERED,  YOU  ARE STILL RESPONSIBLE FOR THE UPKEEP OF THE HOME AND
   34  THE EXTERIOR, INCLUDING THE YARD. FAILURE TO MAINTAIN THE  PROPERTY  MAY
   35  RESULT IN ADDITIONAL COSTS ABOVE AND BEYOND THE FORECLOSURE PROCEEDINGS,
   36  AS WELL AS BUILDING CODE VIOLATIONS WHICH, IF NOT ADDRESSED, MAY LEAD TO
   37  AN ARREST WARRANT.
   38    LEGAL SERVICE PROVIDERS:...........(ENTER NAME AND CONTACT INFORMATION
   39  FOR PROVIDER).
   40    HOUSING  COUNSELOR:..........(ENTER  NAME  AND CONTACT INFORMATION FOR
   41  HOUSING COUNSELOR).
   42    NEW YORK  STATE  ATTORNEY  GENERAL'S  TOLL-FREE  HOTLINE........(ENTER
   43  NUMBER)  OR  VISIT  THE ATTORNEY GENERAL'S WEBSITE AT.........(ENTER WEB
   44  ADDRESS)
   45    NEW  YORK  STATE   DEPARTMENT   OF   FINANCIAL   SERVICES'   TOLL-FREE
   46  HOTLINE..........(ENTER   NUMBER)  OR  VISIT  THE  DEPARTMENT'S  WEBSITE
   47  AT..........(ENTER WEB ADDRESS)"
   48    6. THE ATTORNEY GENERAL SHALL PRESCRIBE THE TELEPHONE NUMBER  AND  WEB
   49  ADDRESS TO BE INCLUDED IN THE NOTICE.
   50    7.  THE DEPARTMENT OF FINANCIAL SERVICES SHALL PRESCRIBE THE TELEPHONE
   51  NUMBER AND WEB ADDRESS TO BE INCLUDED IN THE NOTICE.
   52    S 2. This act shall take effect immediately.
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