Letter: State Legislation Needed to Expedite Foreclosure
Industry Update
October 26, 2015
State legislation needed to expedite foreclosure
The New York Bankers Association has long supported measures to improve New York’s foreclosure process, which is one of the longest in the nation. At the beginning of the crisis, New York State had one of the lowest foreclosure rates in the country. Now it ranks near the top. That is because of the length of time it takes a property to go through New York’s court-mandated foreclosure process. In fact, it now takes an average of more than three years for a lender to foreclose on a property. In most other states, the process concludes much faster.
Until a judgment of foreclosure is rendered by the court, the bank does not own the property. Nor is it receiving payments from the homeowners, even as the bank continues to pay the taxes on these properties. A bank would not risk the reputational or economic harm it would suffer by overtly neglecting a property it owned.
In the cases of vacant and abandoned properties, homes fall into disrepair during the lengthy foreclosure process. We believe that accelerating the process for these vacant properties will cut down on the amount of time they sit in disrepair, and will speed up their return to the market to be sold to a new family. We believe this is the best solution for our communities, and we support legislation to expedite the process.
Michael P. Smith
President & CEO
New York Bankers Association
Source: The Buffalo News