NY State Senate Bill 2017-S7693

Senate Bill S7693

2017-2018 Legislative Session

Relates to including the name and telephone number of the mortgage servicer for a plaintiff in a mortgage foreclosure action on certain documents pertaining to such action

download bill text pdf

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 08, 2018	referred to housing, construction and community development

2017-S7693 (ACTIVE) - Details

See Assembly Version of this Bill:: A11075
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §§1321 & 1351, RPAP L; amd R6511, CPLR
Versions Introduced in 2019-2020 Legislative Session:: S4190, A6976

2017-S7693 (ACTIVE) - Summary

Relates to including the name and telephone number of the mortgage servicer for a plaintiff in a mortgage foreclosure action involving a one- to four-family residential property on certain documents pertaining to such action.

2017-S7693 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7693

SPONSOR: KENNEDY
 
TITLE OF BILL:  An act to amend the real property actions and
proceedings law and the civil practice law and rules, in relation to
including the name and telephone number of the mortgage servicer for a
plaintiff in a mortgage foreclosure action on certain documents pertain-
ing to such action

 
PURPOSE:

The purpose of this bill is to require the loan servicer's name and
phone number be included at multiple points in mortgage foreclosure
proceedings.

 
SUMMARY OF PROVISIONS:

Section 1 amends section 1321 of the real property actions and
proceedings law to have the name and telephone number of the mortgage
servicer added to the order of reference for plaintiffs who are involved
in a mortgage foreclosure of a one- to four-family residential property.

Section 2 amends section 1351 of the real property actions and
proceedings law to have the name and telephone number of the mortgage
servicer added to the judgement for plaintiffs who are involved in a
mortgage foreclosure of a one- to four-family residential property.

Section 3 amends rule 6511 of the civil practice law and rules to
require the name and telephone number of the mortgage servicer added to
the notice of pendency for plaintiffs who are involved in a mortgage
foreclosure of a one-to four-family residential property.

Section 4 sets the effective date.

 
JUSTIFICATION:

Zombie properties put all neighborhoods at risk because abandoned homes
invite crime, lower property values and place an undue burden on local
governments. The New York State Abandoned Property Neighborhood Relief
Act of 2016 addressed many of these problems by requiring a loan servi-
cer, whether a bank or other entity, to maintain the residential proper-
ty on a delinquent mortgage.

This proposed legislation will fill in some of the gaps by requiring
that a mortgage servicer's name and telephone number be listed for any
mortgage foreclosure of a one- to four-family residential property in a
Notice of Pendency (Lis Pendens), the Order of Reference, and the Judge-
ment of Sale.

With this information listed, local municipal officials will have an
efficient way to contact the loan servicer to ensure that maintenance
obligations are enforced.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2017-S7693 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7693
 
                             I N  S E N A T E
 
                             February 8, 2018
                                ___________
 
 Introduced  by  Sen. KENNEDY -- 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
   civil practice law and rules, in relation to including  the  name  and
   telephone  number  of the mortgage servicer for a plaintiff in a mort-
   gage foreclosure action on certain documents pertaining to such action
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision 1 of section 1321 of the real property actions
 and proceedings law, as added by chapter 312 of the  laws  of  1962,  is
 amended to read as follows:
   1.  If  the  defendant  fails to answer within the time allowed or the
 right of the plaintiff is admitted by the answer,  upon  motion  of  the
 plaintiff,  the  court  shall ascertain and determine the amount due, or
 direct a referee to compute the amount due to the plaintiff and to  such
 of  the defendants as are prior incumbrancers of the mortgaged premises,
 and to examine and report whether the mortgaged premises can be sold  in
 parcels  and, if the whole amount secured by the mortgage has not become
 due, to report the amount thereafter to become due. Where the  defendant
 is an infant, and has put in a general answer by his guardian, or if any
 of the defendants be absentees, the order of reference also shall direct
 the  referee  to take proof of the facts and circumstances stated in the
 complaint and to examine the plaintiff or his agent, on oath, as to  any
 payments which have been made. THE ORDER OF REFERENCE SHALL ALSO INCLUDE
 THE  NAME  AND TELEPHONE NUMBER OF THE MORTGAGE SERVICER FOR A PLAINTIFF
 INVOLVING A MORTGAGE FORECLOSURE OF A ONE-  TO  FOUR-FAMILY  RESIDENTIAL
 PROPERTY.
   §  2.  Subdivision  1 of section 1351 of the real property actions and
 proceedings law, as amended by section 8 of part Q of chapter 73 of  the
 laws of 2016, is amended to read as follows:
   1.  The  judgment shall direct that the mortgaged premises, or so much
 thereof as may  be  sufficient  to  discharge  the  mortgage  debt,  the
 expenses  of the sale and the costs of the action, and which may be sold
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD14602-01-8

 S. 7693                             2
 
 separately without material injury to the parties interested, be sold by
 or under the direction of the sheriff of the county, or a referee within
 ninety days of the date of the judgment. THE JUDGMENT SHALL ALSO INCLUDE
 THE  NAME  AND TELEPHONE NUMBER OF THE MORTGAGE SERVICER FOR A PLAINTIFF
 INVOLVING A MORTGAGE FORECLOSURE OF A ONE-  TO  FOUR-FAMILY  RESIDENTIAL
 PROPERTY.
   § 3. Subdivision (b) of rule 6511 of the civil practice law and rules,
 such  rule  as renumbered by chapter 318 of the laws of 1962, is amended
 to read as follows:
   (b) Content; designation of index. A notice of  pendency  shall  state
 the names of the parties to the action, INCLUDING THE NAME AND TELEPHONE
 NUMBER  OF  THE  MORTGAGE  SERVICER  FOR A FORECLOSING PARTY INVOLVING A
 MORTGAGE FORECLOSURE OF A ONE- TO FOUR-FAMILY RESIDENTIAL PROPERTY,  the
 object  of  the  action  and  a  description of the property affected. A
 notice of pendency filed with a clerk who maintains a block index  shall
 contain a designation of the number of each block on the land map of the
 county  which  is affected by the notice. Except in an action for parti-
 tion a notice of pendency filed with a clerk who  does  not  maintain  a
 block  index  shall contain a designation of the names of each defendant
 against whom the notice is directed to be indexed.
   § 4. This act shall take effect immediately.

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