Establishes a one year moratorium on actions to foreclose a mortgage.
TITLE OF BILL: An act to amend the real property actions and proceedings law, in relation to establishing a one year moratorium on actions to foreclose a mortgage
PURPOSE: To enact a one year moratorium on foreclosures in New York State.
SUMMARY OF PROVISIONS: Provides for a one year moratorium on foreclosures, provided that the homeowner abides by the good faith agreement made with the bank or mortgage holder.
JUSTIFICATION: Foreclosures have reached an all time high during the current economic recession. According to Realty Trac, Inc., there have been more than 54,000 homes in foreclosure over the past four years statewide. Today, one in ten residential mortgages in New York City is seriously delinquent Queens County has among the highest percentages of seriously delinquent mortgages in New York City. Foreclosures create a vicious cycle of unemployment, deterioration of property values and economic activity in the community, and requires additional financial assistance from state and local government for a variety of services.
While the economy is slowly improving, it is imperative that responsible homeowners who make a good faith effort to pay their mortgages during times of unemployment have the opportunity to continue to own their homes. This legislation would impose a one year moratorium on foreclosures, provided that the homeowner maintains the mortgage payment agreed to as a result of negotiations with the bank or other mortgage holder. This will allow the hemorrhaging of foreclosures to cease while the economy recovers over the next year. This will allow New Yorkers to secure employment and get their finances back on track, which in turn will assist in stabilizing our state's economy.
LEGISLATIVE HISTORY: New Bill.
FISCAL IMPLICATIONS: None.
LOCAL FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 7859 IN SENATE October 17, 2012 ___________Introduced by Sen. ADDABBO -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the real property actions and proceedings law, in relation to establishing a one year moratorium on actions to foreclose a mortgage THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The real property actions and proceedings law is amended by adding a new section 1392 to read as follows: S 1392. MORATORIUM ON ACTIONS TO FORECLOSE A MORTGAGE. 1. BEGINNING ON THE EFFECTIVE DATE OF THIS SECTION AND ENDING ONE YEAR AFTER SUCH DATE, NO ACTION TO FORECLOSE A MORTGAGE ON REAL PROPERTY LOCATED IN THIS STATE SHALL BE BROUGHT PURSUANT TO THIS ARTICLE IN ANY COURT IN THIS STATE. 2. ANY MORTGAGOR IN THIS STATE WHO OWNS PROPERTY IN THIS STATE THAT WOULD OTHERWISE BE SUBJECT TO AN ACTION TO FORECLOSE SUCH MORTGAGE PURSUANT TO THIS ARTICLE SHALL ENTER INTO GOOD FAITH NEGOTIATIONS WITH THE MORTGAGEE OF SUCH MORTGAGE TO NEGOTIATE TERMS FOR REPAYMENT OF THE LOAN SECURED BY SUCH MORTGAGE. UPON AGREEMENT OF SUCH TERMS, SUCH MORT- GAGOR SHALL MAKE PAYMENTS TO SUCH MORTGAGEE ACCORDING TO SUCH AGREEMENT. FAILURE BY SUCH MORTGAGOR TO MAKE PAYMENTS PURSUANT TO SUCH AGREEMENT SHALL CONSTITUTE A WAIVER BY SUCH MORTGAGOR OF THE MORATORIUM PROTECTIONS SET FORTH IN SUBDIVISION ONE OF THIS SECTION. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD16520-01-2