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NEW YORK STATE LEGISLATIVE UPDATE RE MANDATORY SETTLEMENT CONFERENCES, PRE-FORECLOSURE NOTICES & MORE
Foreclosure

Client Update | Heather C.M. Rogers and Robert L. Galbraith, Jr. | December 17, 2009

On December 15, 2009, New York Governor Patterson signed into law legislation intended to strengthen the foreclosure laws enacted in September, 2009.

  • Effective December 15, 2009, all pending foreclosure matters which do not involve a sub-prime or high cost loan, and which no Judgment has been rendered, will be subject to a mandatory settlement conference upon request of any Defendant who is the Borrower (or as a practical matter, at the direction of the Court).
  • Effective January 14, 2010, 90-day pre-foreclosure notices will be required on all home loans and residential cooperatives prior to filing suit.
  • Effective January 14, 2010, for all properties sold at Referee's Sale, a 90 day notice will be required to be sent to any tenant advising of the change in ownership of the property and be permitted to remain in their home for the remainder of their lease term or 90 days, whichever is longer.
  • Effective January 14, 2010, compelling delivery of possession of real property will require a 90 day notice be sent to any tenant regarding their statutory right to stay in the property for the prescribed period.
  • Effective January 14, 2010, for evictions, a 90 day notice will be required to be sent to any tenant regarding their statutory right to stay in the property for the prescribed period.
  • Effective February 13, 2010, all home loans will be subject to a mandatory settlement conference, requiring:
    • Plaintiff and Defendant negotiate in good faith, and
    • A party to a foreclosure action may not charge, impose, or otherwise require payment form the other party for any cost, including but not limited to attorney's fees, for appearance at or participation in the settlement conference.
  • Effective February 13, 2010, lenders will be required, within three days of service of the 90-day pre-foreclosure notice on a homeowner, to make an electronic filing with the Banking Department including at a minimum:
    • The name,
    • Address,
    • Last known telephone if the borrower
    • The amount claimed as due and owing onthe Mortgage, and
    • "Such other information as will the Superintendent to ascertain the type of loan at issue.
  • Effective April 14, 2010 plaintiffs in a foreclosure action who obtain a judgment of foreclosure and sale will have the duty to maintain foreclosed properties until sold.

A link to the legislation, with summary, is attached hereto for your review and convenience. http://assembly.state.ny.us/leg/?bn=40007

For more information, please contact Heather C.M. Rogers at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or Robert L. Galbraith, Jr. at This e-mail address is being protected from spambots. You need JavaScript enabled to view it