Missouri Illinois Bankruptcy Attorney Foreclosure Reposession of Car

How We Can Help you

Bankruptcy Blog

Library

Castle Law Office Bankruptcy News for Missouri & Illinois | Castle Law Bankruptcy Current Events

New York Governor Takes Steps to Protect Homeowners from Foreclosure

On December 15, New York Governor David Paterson signed into law stronger foreclosure regulations for the intended purpose of protecting New Yorkers from losing their homes, such as requiring better notice to homeowners faced with foreclosure and mandating settlement hearings with banks.

The law expands a package of regulations adopted in 2008 that mostly dealt with homeowners caught in the sub-prime mortgage crisis. The new laws require that banks provide a 90-day pre-foreclosure notice on all home loans, not just sub-prime loans.

Paterson and state lawmakers say the goal is to allow homeowners additional time to work with lenders in order to prevent foreclosures. Another regulation will expand to all homeowners mandatory settlement conferences with their lender, not just borrowers with sub-prime loans.

During the first three quarters of 2009, there were 39,923 foreclosure filings in New York, a decrease of 11 percent from the same period in 2008.

In spite of the decline, however, Paterson says that the new law was necessary in order to ensure that all homeowners were protected, not just homeowners who undertook risky loans.

According to Josh Zinner, co-director of the Manhattan-based Neighborhood Economic Development Advocacy Project, New York is the first state to require settlement conferences for all pending foreclosures.

Other components of the law include:

-Requiring lenders who serve a 90-day foreclosure notice on a homeowner to file with the state Banking Department within three days, allowing the state to provide assistance to distressed homeowners.

-Establishing protections for tenants in foreclosed properties by requiring that they receive written notice of a change in ownership and be permitted to remain in their home for the remainder of their lease term or a period of 90 days, whichever is longest.

-Enhance consumer protections to prevent homeowners from falling prey to scams and prevent brokers who perform distressed property consulting services from accepting upfront fees.

back to top

News

FAQs