New York Bill Aims to Require Servicer Contact Info During Foreclosure
Legislation Update
July 21, 2020
Source: The New York State Senate (full bill text)
Sponsor Memo
BILL NUMBER: S4190
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 pertaining 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 servicer, whether a bank or other entity, to maintain the residential property 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 f or any mortgage foreclosure of a one-to four-family residential property in a Notice of Pendency (Lis Pendens), the Order of Reference, and the Judgement 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.
