Bill Text: NY S07722 | 2019-2020 | General Assembly | Introduced
Bill Title: Provides resources for adequate legal counsel to homeowners at risk of foreclosure by including the web address to the attorney directory database in the notice given by a loan servicer, assignee or lender to the borrower.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-02-11 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S07722 Detail]
Download: New_York-2019-S07722-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7722 IN SENATE February 11, 2020 ___________ Introduced by Sen. SANDERS -- 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 providing resources for adequate legal counsel to homeown- ers The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivisions 1 and 2 of section 1304 of the real property 2 actions and proceedings law, subdivision 1 as amended by section 6 of 3 part Q of chapter 73 of the laws of 2016 and subdivision 2 as amended by 4 section 4 of part HH of chapter 58 of the laws of 2018, are amended and 5 a new subdivision 8 is added to read as follows: 6 1. Notwithstanding any other provision of law, with regard to a home 7 loan, at least ninety days before a lender, an assignee or a mortgage 8 loan servicer commences legal action against the borrower, or borrowers 9 at the property address and any other address of record, including mort- 10 gage foreclosure, such lender, assignee or mortgage loan servicer shall 11 give notice to the borrower in at least fourteen-point type which shall 12 include the following: 13 "YOU MAY BE AT RISK OF FORECLOSURE. PLEASE READ THE FOLLOWING NOTICE 14 CAREFULLY" 15 "As of ___, your home loan is ___ days and ___ dollars in default. 16 Under New York State Law, we are required to send you this notice to 17 inform you that you are at risk of losing your home. 18 Attached to this notice is a list of government approved housing coun- 19 seling agencies in your area which provide free counseling. You can also 20 call the NYS Office of the Attorney General's Homeowner Protection 21 Program (HOPP) toll-free consumer hotline to be connected to free hous- 22 ing counseling services in your area at 1-855-HOME-456 (1-855-466-3456), 23 or visit their website at http://www.aghomehelp.com/. A statewide list- 24 ing by county is also available at http://www.dfs.ny.gov/consumer/mortg 25 nys np counseling agencies.htm. Qualified free help is available; watch 26 out for non-attorney companies or people who charge a fee for these EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14810-02-0S. 7722 2 1 services. This notice is the first step to a possible foreclosure 2 action against you. To protect your legal rights, it is advisable that 3 you consult or retain a licensed attorney who is well versed in foreclo- 4 sure defense. Contact your local bar association or a local state funded 5 legal services agency to consult or retain an attorney. To check an 6 attorney's license status, educational background and history of miscon- 7 duct, you may visit the New York state unified court system's attorney 8 directory database at: 9 http://iapps.courts.state.ny.us/attorney/AttorneySearch. 10 Housing counselors from New York-based agencies listed on the website 11 above are trained to help homeowners who are having problems making 12 their mortgage payments and can help you find the best option for your 13 situation. If you wish, you may also contact us directly at __________ 14 and ask to discuss possible options. 15 While we cannot assure that a mutually agreeable resolution is possi- 16 ble, we encourage you to take immediate steps to try to achieve a resol- 17 ution. The longer you wait, the fewer options you may have. 18 If you have not taken any actions to resolve this matter within 90 19 days from the date this notice was mailed, we may commence legal action 20 against you (or sooner if you cease to live in the dwelling as your 21 primary residence.) 22 If you need further information, please call the New York State 23 Department of Financial Services' toll-free helpline at (show number) or 24 visit the Department's website at (show web address). 25 IMPORTANT: You have the right to remain in your home until you receive 26 a court order telling you to leave the property. If a foreclosure action 27 is filed against you in court, you still have the right to remain in the 28 home until a court orders you to leave. You legally remain the owner of 29 and are responsible for the property until the property is sold by you 30 or by order of the court at the conclusion of any foreclosure 31 proceedings. This notice is not an eviction notice, and a foreclosure 32 action has not yet been commenced against you." 33 2. The notices required by this section shall be sent by such lender, 34 assignee (including purchasing investor) or mortgage loan servicer to 35 the borrower, by registered or certified mail and also by first-class 36 mail to the last known address of the borrower, and to the residence 37 that is the subject of the mortgage. The notices required by this 38 section shall be sent by the lender, assignee or mortgage loan servicer 39 in a separate envelope from any other mailing or notice. Notice is 40 considered given as of the date it is mailed. The notices required by 41 this section shall contain a current list of at least five housing coun- 42 seling agencies, all county bar associations and/or all state funded 43 legal services agencies serving the county where the property is located 44 from the most recent listing available from department of financial 45 services. The list shall include the counseling agencies', county bar 46 associations' and legal services agencies' last known addresses and 47 telephone numbers. The department of financial services shall make 48 available on its websites a listing, by county, of such agencies and 49 services. The lender, assignee or mortgage loan servicer shall use such 50 lists to meet the requirements of this section. 51 8. Dismissal of a foreclosure complaint based upon a court's finding 52 that the lender failed to strictly comply with the provisions of this 53 section shall constitute a successful defense pursuant to section two 54 hundred eighty-two of the real property law. 55 § 2. This act shall take effect on the sixtieth day after it shall 56 have become a law.
