Bill Text: NY S05124 | 2019-2020 | General Assembly | Introduced

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Bill Title: Requires the foreclosing party in a residential foreclosure action to offer a refinancing opportunity to the mortgagor.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S05124 Detail]

Download: New_York-2019-S05124-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          5124
                               2019-2020 Regular Sessions
                    IN SENATE
                                     April 10, 2019
                                       ___________
        Introduced by Sens. PERSAUD, STAVISKY -- read twice and ordered printed,
          and  when  printed  to  be  committed  to  the  Committee  on Housing,
          Construction and Community Development
        AN ACT to amend the  real  property  actions  and  proceedings  law,  in
          relation  to requiring the foreclosing party in a residential foreclo-
          sure action to offer a refinancing opportunity to the mortgagor
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Section 1303 of the real property actions and proceedings
     2  law is amended by adding a new subdivision 3-b to read as follows:
     3    3-b. (a) At the time the notice to any residential mortgagor  required
     4  by  paragraph  a  of subdivision one of this section is delivered to the
     5  mortgagor or the mortgagor's agent, the  foreclosing  party  shall  also
     6  provide  an offer to the mortgagor to refinance the mortgage. Such offer
     7  shall be included with the summons and complaint at the time such  docu-
     8  ments are served upon the mortgagor or the mortgagor's agent.
     9    (b) The refinancing offer described in paragraph a of this subdivision
    10  shall  be an offer to refinance the mortgage at the lowest interest rate
    11  offered by the foreclosing party within the thirty  days  prior  to  the
    12  commencement of the foreclosure proceeding, and shall be irrespective of
    13  the borrower's credit rating, income, assets or payment history.
    14    (c)  A  foreclosing  party  shall not be required to offer refinancing
    15  pursuant to this  subdivision  more  than  one  time  in  a  foreclosure
    16  proceeding or more than one time with respect to the same property while
    17  the property is owned by the same mortgagor.
    18    (d) The provisions of this subdivision shall only apply when the fore-
    19  closing  party  is a bank or financial institution that offers mortgages
    20  for residential real property as part of its regular course of  business
    21  and is the sole holder of the mortgage on the property.
    22    §  2.  This  act  shall take effect on the sixtieth day after it shall
    23  have become a law and shall apply to  all  foreclosures  on  residential
    24  properties commencing on or after such date.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07158-01-9