S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3751

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 17, 2015
                               ___________

Introduced by Sens. ESPAILLAT, KRUEGER, MONTGOMERY, PARKER -- 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:

  Section 1. The real property actions and proceedings law is amended by
adding a new section 1308 to read as follows:
  S 1308. ASSIGNMENT OF COUNSEL. A HOMEOWNER IN A FORECLOSURE ACTION WHO
IS FINANCIALLY UNABLE TO  OBTAIN  COUNSEL  FOR  REPRESENTATION  IN  SUCH
ACTION  SHALL HAVE A RIGHT TO ASSIGNED COUNSEL BY THE COURT.  ASSIGNMENT
OF COUNSEL ISSUED UNDER THIS SECTION SHALL BE IMPLEMENTED AS PROVIDED IN
ARTICLE EIGHTEEN-B OF THE COUNTY LAW.
  S 2. Subdivision 3 of section 1303 of the real  property  actions  and
proceedings  law,  as  amended by chapter 507 of the laws of 2009 and as
further amended by section 104 of part A of chapter 62 of  the  laws  of
2011, is amended to read as follows:
  3.  The  notice to any mortgagor required by paragraph (a) of subdivi-
sion one of this section shall appear as follows:
                   Help for Homeowners in Foreclosure
  New York State Law requires that we send you  this  notice  about  the
foreclosure process. Please read it carefully.
Summons and Complaint
  You  are  in danger of losing your home. If you fail to respond to the
summons and complaint in this foreclosure  action,  you  may  lose  your
home.  Please read the summons and complaint carefully. You should imme-
diately contact an attorney or your local legal  aid  office  to  obtain
advice on how to protect yourself.
Sources of Information and Assistance

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05941-01-5
              

S. 3751                             2

  The  State  encourages  you  to  become informed about your options in
foreclosure. In addition to seeking assistance from an attorney or legal
aid office, there are government agencies and  non-profit  organizations
that  you  may contact for information about possible options, including
trying  to  work with your lender during this process.  YOU MAY BE ENTI-
TLED TO ASSIGNED COUNSEL IF YOU ARE FINANCIALLY UNABLE TO OBTAIN  REPRE-
SENTATION.
  To  locate  an  entity  near  you, you may call the toll-free helpline
maintained by the New York State Department  of  Financial  Services  at
(enter number) or visit the Department's website at (enter web address).
Foreclosure rescue scams
  Be careful of people who approach you with offers to "save" your home.
There  are  individuals  who watch for notices of foreclosure actions in
order to unfairly profit from a  homeowner's  distress.  You  should  be
extremely  careful  about any such promises and any suggestions that you
pay them a fee or sign over your deed. State law requires anyone  offer-
ing  such  services  for  profit  to  enter  into a contract which fully
describes the services they will perform and fees they will charge,  and
which  prohibits  them  from  taking  any money from you until they have
completed all such promised services.
  S 3. The article heading of article 18-B of the county law, as amended
by chapter 682 of the laws of 1977, is amended to read as follows:
     REPRESENTATION OF PERSONS ACCUSED OF CRIME OR PARTIES BEFORE THE
       FAMILY COURT OR SURROGATE'S COURT OR IN CERTAIN FORECLOSURE
                                 ACTIONS
  S 4. The opening paragraph of  section  722  of  the  county  law,  as
amended by chapter 7 of the laws of 2007, is amended to read as follows:
  The  governing  body of each county and the governing body of the city
in which a county is wholly contained shall place in operation  through-
out  the  county  a plan for providing counsel to persons charged with a
crime or who are entitled to counsel pursuant  to  section  two  hundred
sixty-two  or  section  eleven  hundred  twenty of the family court act,
article six-C of the correction law, section four hundred seven  of  the
surrogate's  court procedure act [or], article ten of the mental hygiene
law OR SECTION THIRTEEN HUNDRED EIGHT OF THE REAL PROPERTY  ACTIONS  AND
PROCEEDINGS LAW, who are financially unable to obtain counsel. Each plan
shall  also  provide for investigative, expert and other services neces-
sary for an adequate defense. The plan  shall  conform  to  one  of  the
following:
  S  5. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.