Bill Text: NY S05370 | 2019-2020 | General Assembly | Introduced


Bill Title: Provides for free legal representation in certain mortgage foreclosure actions where the homeowner is financially unable to obtain counsel; requires notice of such availability.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S05370 Detail]

Download: New_York-2019-S05370-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          5370
                               2019-2020 Regular Sessions
                    IN SENATE
                                     April 29, 2019
                                       ___________
        Introduced  by  Sen.  COMRIE -- 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 and the
          county law, in  relation  to  representation  of  certain  persons  in
          private residential foreclosure actions
          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 1308-a to read as follows:
     3    § 1308-a. Assignment of counsel. A homeowner in a  foreclosure  action
     4  who  is  financially unable to obtain counsel for representation in such
     5  action shall have a right to assigned counsel by the court.   Assignment
     6  of counsel issued under this section shall be implemented as provided in
     7  article eighteen-B of the county law.
     8    §  2.  Subdivision  3 of section 1303 of the real property actions and
     9  proceedings law, as amended by section 5 of part Q of chapter 73 of  the
    10  laws of 2016, is amended to read as follows:
    11    3.  The  notice to any mortgagor required by paragraph (a) of subdivi-
    12  sion one of this section shall appear as follows:
    13                     Help for Homeowners in Foreclosure
    14    New York State Law requires that we send you  this  notice  about  the
    15  foreclosure process. Please read it carefully.
    16  Summons and Complaint
    17    You  are  in danger of losing your home. If you fail to respond to the
    18  summons and complaint in this foreclosure  action,  you  may  lose  your
    19  home.  Please read the summons and complaint carefully. You should imme-
    20  diately contact an attorney or your local legal  aid  office  to  obtain
    21  advice on how to protect yourself.
    22  Sources of Information and Assistance
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09444-01-9

        S. 5370                             2
     1    The  State  encourages  you  to  become informed about your options in
     2  foreclosure. In addition to seeking assistance from an attorney or legal
     3  aid office, there are government agencies and  non-profit  organizations
     4  that  you  may contact for information about possible options, including
     5  trying to work with your lender during this process. You may be entitled
     6  to  assigned  counsel  if you are financially unable to obtain represen-
     7  tation.
     8    To locate an entity near you, you  may  call  the  toll-free  helpline
     9  maintained  by  the  New  York State Department of Financial Services at
    10  (enter number) or visit the Department's website at (enter web address).
    11    Rights and Obligations
    12  YOU ARE NOT REQUIRED TO LEAVE YOUR HOME AT THIS TIME. You have the right
    13  to stay in your  home  during  the  foreclosure  process.  You  are  not
    14  required  to  leave  your home unless and until your property is sold at
    15  auction pursuant to a judgment of foreclosure and sale.
    16  Regardless of whether you  choose  to  remain  in  your  home,  YOU  ARE
    17  REQUIRED TO TAKE CARE OF YOUR PROPERTY and pay property taxes in accord-
    18  ance with state and local law.
    19  Foreclosure rescue scams
    20    Be careful of people who approach you with offers to "save" your home.
    21  There  are  individuals  who watch for notices of foreclosure actions in
    22  order to unfairly profit from a  homeowner's  distress.  You  should  be
    23  extremely  careful  about any such promises and any suggestions that you
    24  pay them a fee or sign over your deed. State law requires anyone  offer-
    25  ing  such  services  for  profit  to  enter  into a contract which fully
    26  describes the services they will perform and fees they will charge,  and
    27  which  prohibits  them  from  taking  any money from you until they have
    28  completed all such promised services.
    29    § 3. The article heading of article 18-B of the county law, as amended
    30  by chapter 682 of the laws of 1977, is amended to read as follows:
    31       REPRESENTATION OF PERSONS ACCUSED OF CRIME OR PARTIES BEFORE THE
    32         FAMILY COURT OR SURROGATE'S COURT OR IN CERTAIN FORECLOSURE
    33                                   ACTIONS
    34    § 4. The opening paragraph of  section  722  of  the  county  law,  as
    35  amended by chapter 7 of the laws of 2007, is amended to read as follows:
    36    The  governing  body of each county and the governing body of the city
    37  in which a county is wholly contained shall place in operation  through-
    38  out  the  county  a plan for providing counsel to persons charged with a
    39  crime or who are entitled to counsel pursuant  to  section  two  hundred
    40  sixty-two  or  section  eleven  hundred  twenty of the family court act,
    41  article six-C of the correction law, section four hundred seven  of  the
    42  surrogate's  court procedure act [or], article ten of the mental hygiene
    43  law or section thirteen hundred eight-a of the real property actions and
    44  proceedings law, who are financially unable to obtain counsel. Each plan
    45  shall also provide for investigative, expert and other  services  neces-
    46  sary  for  an  adequate  defense.  The  plan shall conform to one of the
    47  following:
    48    § 5. This act shall take effect on the first of January next  succeed-
    49  ing the date on which it shall have become a law.
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