S317-2013 Actions

• Jan 9, 2013: REFERRED TO JUDICIARY

S317-2013 Memo

BILL NUMBER:S317

TITLE OF BILL:
An act
to amend the real property law, in relation to prohibiting mortgagee
from refusing to accept partial mortgage payments

PURPOSE:
To require that banks, lenders and mortgagees accept partial mortgage
payments which represent at a minimum a mortgage payment but not the
total arrearages that may be due and owing.

SUMMARY OF PROVISIONS:
Section 1. Amends the Real Property Tax law by adding a new section
254-e. Provides that no mortgagee shall refuse to accept partial
payment on a mortgage which does not bring the mortgagor current on
the mortgage debt.

Section 2. Effective Date

EXISTING LAW:
None.

JUSTIFICATION:
Due to the state of the economy, many people may find themselves in
dire straits, due to loss of employment, under-employment, or
illness. Despite these circumstances, many people are still
attempting to pay their mortgage obligations and many may fall into
arrears.

The banks, lenders or mortgagees have taken the position that they
will only accept the total amount of the arrearages or if they do take
a payment, they will not apply it to the outstanding indebtedness
while placing it into a special account which gains interest; but
neither the payment or interest is credited to the mortgagor's
arrearages on their mortgage.

The provisions of this proposed section will allow payments to be
received and credited and will not act as a bar to any procedural
rights of the banks, lenders or mortgagees.

The aim of this bill is to forestall foreclosures and give mortgagors
an incentive and opportunity to redeem their property; and limit the
destructive effects of foreclosure and its concomitant societal
concerns.

LEGISLATIVE HISTORY:
2012: S.6541 - Referred to Judiciary/A.8040 - Referred to Judiciary
2011: A.8040 - Referred to Banks, Reference changed to Judiciary

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Takes effect on the thirtieth day after it shall become a law.

S317-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                          317
 2013-2014 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 9, 2013
 
 Introduced  by  Sen.  DIAZ  --  read twice and ordered printed, and when
 printed to be committed to the Committee on Judiciary
 

AN ACT to amend the real property law, in relation to prohibiting  mort
 gagee from refusing to accept partial mortgage payments
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1. The real property law is amended by adding  a  new  section
 254-e to read as follows:

 

S  254-E. REFUSAL BY MORTGAGEE TO ACCEPT PARTIAL MORTGAGE PAYMENTS. 1.
 NO MORTGAGEE SHALL REFUSE TO ACCEPT  A  PARTIAL  PAYMENT  OF  AN  ENTIRE
 AMOUNT  DUE  FROM A MORTGAGOR WHICH DOES NOT BRING THE MORTGAGOR CURRENT
 ON HIS OR HER MORTGAGE DEBT.
 2. THE PROVISIONS OF THIS SECTION SHALL NOT BAR ANY OTHER  CONTRACTUAL
 OR STATUTORY RIGHTS OR REMEDIES AVAILABLE TO A MORTGAGOR.
 

S  2.  This  act shall take effect on the thirtieth day after it shall
 have become a law.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD01005-01-3

*By contributing or voting you agree to the Terms of Participation and Privacy Policy and verify you are over 13.

Discuss!