NY State Senate Bill 2019-S7722

Senate Bill S7722

2019-2020 Legislative Session

Relates to providing resources for adequate legal counsel to homeowners at risk of foreclosure

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 11, 2020	referred to housing, construction and community development

2019-S7722 (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §1304, RPAP L

2019-S7722 (ACTIVE) - Summary

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.

2019-S7722 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7722

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the real property actions and proceedings law, in
relation to providing resources for adequate legal counsel to homeowners

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would require lenders to inform homeowners through the 90-day
notices that such notices may be a precursor to a foreclosure action and
strongly encourages the homeowners to seek legal advice to from an
attorney well verse in foreclosure defense.

 
SUMMARY OF PROVISIONS:

Under current law, RPAPL 1304 requires a lender and/or servicer to mail
two 90-day notices along with a list of at least five housing counseling
agencies in the county where the property is located. This new provision
amends the law to: (a) include mandatory language that informs the home-

owner that receipt of such notices may be a precursor to a possibly
foreclosure action and strongly encourages the homeowner to seek legal
advice; and (2)require a lender and/or servicer to also include in the
notices information of local bar association and/or state funded legal
nonprofits in the county where the property is located.

 
JUSTIFICATION:

The intent of this legislation is to better inform a homeowner that
receipt of the 90-day notices may be the first step to a future foreclo-
sure action. By providing contact information to local bar associations
and state funded legal nonprofits in the county where the property is
located, the homeowner would be more encouraged to seek or retain legal
counsel to protect their rights and become more aware of the foreclosure
process so that they do not become in default or ignore the legal proc-
ess of such action.

 
PRIOR LEGISLATIVE HISTORY:

None

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

There is no fiscal impact to the State.

 
EFFECTIVE DATE:
This act shall take effect sixty days after it becomes law.

2019-S7722 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7722
 
                             I N  S E N A T E
 
                             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:
 
   Section  1.  Subdivisions 1 and 2 of section 1304 of the real property
 actions and proceedings law, subdivision 1 as amended by  section  6  of
 part Q of chapter 73 of the laws of 2016 and subdivision 2 as amended by
 section  4 of part HH of chapter 58 of the laws of 2018, are amended and
 a new subdivision 8 is added to read as follows:
   1. Notwithstanding any other provision of law, with regard to  a  home
 loan,  at  least  ninety days before a lender, an assignee or a mortgage
 loan servicer commences legal action against the borrower, or  borrowers
 at the property address and any other address of record, including mort-
 gage  foreclosure, such lender, assignee or mortgage loan servicer shall
 give notice to the borrower in at least fourteen-point type which  shall
 include the following:
   "YOU MAY BE AT RISK OF FORECLOSURE. PLEASE READ THE FOLLOWING NOTICE
                                CAREFULLY"
   "As  of  ___,  your  home loan is ___ days and ___ dollars in default.
 Under New York State Law, we are required to send  you  this  notice  to
 inform you that you are at risk of losing your home.
   Attached to this notice is a list of government approved housing coun-
 seling agencies in your area which provide free counseling. You can also
 call  the  NYS  Office  of  the  Attorney General's Homeowner Protection
 Program (HOPP) toll-free consumer hotline to be connected to free  hous-
 ing counseling services in your area at 1-855-HOME-456 (1-855-466-3456),
 or visit their website at http://www.aghomehelp.com/.  A statewide list-
 ing  by county is also available at http://www.dfs.ny.gov/consumer/mortg
 nys np counseling agencies.htm.  Qualified free help is available; watch
 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.
                                                            LBD14810-02-0

 S. 7722                             2
 
 services.    THIS  NOTICE  IS  THE  FIRST STEP TO A POSSIBLE FORECLOSURE
 ACTION AGAINST YOU. TO PROTECT YOUR LEGAL RIGHTS, IT IS  ADVISABLE  THAT
 YOU CONSULT OR RETAIN A LICENSED ATTORNEY WHO IS WELL VERSED IN FORECLO-
 SURE DEFENSE. CONTACT YOUR LOCAL BAR ASSOCIATION OR A LOCAL STATE FUNDED
 LEGAL  SERVICES  AGENCY  TO  CONSULT  OR RETAIN AN ATTORNEY. TO CHECK AN
 ATTORNEY'S LICENSE STATUS, EDUCATIONAL BACKGROUND AND HISTORY OF MISCON-
 DUCT, YOU MAY VISIT THE NEW YORK STATE UNIFIED COURT  SYSTEM'S  ATTORNEY
 DIRECTORY                          DATABASE                          AT:
 HTTP://IAPPS.COURTS.STATE.NY.US/ATTORNEY/ATTORNEYSEARCH.
   Housing counselors from New York-based agencies listed on the  website
 above  are  trained  to  help  homeowners who are having problems making
 their mortgage payments and can help you find the best option  for  your
 situation.  If  you wish, you may also contact us directly at __________
 and ask to discuss possible options.
   While we cannot assure that a mutually agreeable resolution is  possi-
 ble, we encourage you to take immediate steps to try to achieve a resol-
 ution.  The longer you wait, the fewer options you may have.
   If  you  have  not  taken any actions to resolve this matter within 90
 days from the date this notice was mailed, we may commence legal  action
 against  you  (or  sooner  if  you cease to live in the dwelling as your
 primary residence.)
   If you need further  information,  please  call  the  New  York  State
 Department of Financial Services' toll-free helpline at (show number) or
 visit the Department's website at (show web address).
   IMPORTANT: You have the right to remain in your home until you receive
 a court order telling you to leave the property. If a foreclosure action
 is filed against you in court, you still have the right to remain in the
 home  until a court orders you to leave. You legally remain the owner of
 and are responsible for the property until the property is sold  by  you
 or  by  order  of  the  court  at  the  conclusion  of  any  foreclosure
 proceedings. This notice is not an eviction notice,  and  a  foreclosure
 action has not yet been commenced against you."
   2.  The notices required by this section shall be sent by such lender,
 assignee (including purchasing investor) or mortgage  loan  servicer  to
 the  borrower,  by  registered or certified mail and also by first-class
 mail to the last known address of the borrower,  and  to  the  residence
 that  is  the  subject  of  the  mortgage.  The notices required by this
 section shall be sent by the lender, assignee or mortgage loan  servicer
 in  a  separate  envelope  from  any  other mailing or notice. Notice is
 considered given as of the date it is mailed. The  notices  required  by
 this section shall contain a current list of at least five housing coun-
 seling  agencies,  ALL  COUNTY  BAR ASSOCIATIONS AND/OR ALL STATE FUNDED
 LEGAL SERVICES AGENCIES serving the county where the property is located
 from the most recent listing  available  from  department  of  financial
 services.  The  list  shall include the counseling agencies', COUNTY BAR
 ASSOCIATIONS' AND LEGAL SERVICES  AGENCIES'  last  known  addresses  and
 telephone  numbers.  The  department  of  financial  services shall make
 available on its websites a listing, by county,  of  such  agencies  AND
 SERVICES.  The lender, assignee or mortgage loan servicer shall use such
 lists to meet the requirements of this section.
   8. DISMISSAL OF A FORECLOSURE COMPLAINT BASED UPON A  COURT'S  FINDING
 THAT  THE  LENDER  FAILED TO STRICTLY COMPLY WITH THE PROVISIONS OF THIS
 SECTION SHALL CONSTITUTE A SUCCESSFUL DEFENSE PURSUANT  TO  SECTION  TWO
 HUNDRED EIGHTY-TWO OF THE REAL PROPERTY LAW.
   §  2.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.

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