NYS To Expand Protections To Homeowners Facing Foreclosure; Upfront Fees For Loan Modification, Distress Property Consulting Services Now Banned

In Albany, New York, The Associated Press reports:

• The state Legislature has passed a bill that will give New York state homeowners and renters more protection during foreclosures. It will expand the mandatory 90-day pre-foreclosure notice to all types of home loans -- not just subprime mortgages -- so all homeowners are given information and time to take action.(1)

• Gov. David Paterson introduced the bill. It will allow the Banking Department and the Division of Housing and Community Renewal to find and help homeowners facing foreclosure. It also creates new protections for renters living in foreclosed properties, allowing them to remain for the remainder of their lease or 90 days -- whichever is longer. The bill also protects homeowners by barring brokers who perform distressed property consulting services from accepting upfront fees.(2)

Source: NY passes new foreclosure protections.

See also, The New York Times: Foreclosure Protections for All.

Thanks to Bill Collins of Crossroads Abstract, Rochester, NY for the heads-up on the pending legislation.

(1) The required pre-foreclosure settlement conference will now be available to all homeowners as well, not just to high-interest mortgagors.

(2) The law also requires mortgagees to maintain the properties up to code if vacant, or abandoned by the owner and occupied by the tenant, such obligation beginning on the date the mortgagee obtains the foreclosure judgment in court. The bill now awaits the governor's signature.