senate Bill S3534

Relates to a plaintiff in a mortgage foreclosure action obtaining a judgment of foreclosure and sale in good faith

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 05 / Feb / 2013
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 08 / Jan / 2014
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Summary

Relates to a plaintiff in a mortgage foreclosure action obtaining a judgment of foreclosure and sale in good faith.

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Bill Details

Versions:
S3534
Legislative Cycle:
2013-2014
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
Real Property Actions and Proceedings Law
Laws Affected:
Amd ยง1307, RPAP L

Sponsor Memo

BILL NUMBER:S3534

TITLE OF BILL: An act to amend the real property actions and
proceedings law, in relation to a plaintiff in a mortgage foreclosure
action obtaining a judgment of foreclosure and sale in good faith

PURPOSE: To require plaintiffs in mortgage foreclosure actions to act
in good faith when foreclosing on a property.

SUMMARY OF PROVISIONS:

Section 1307 of the real property, actions and proceedings law is
amended to require plaintiffs to obtain a mortgage foreclosure in 'good
faith' and defines 'good faith' as honesty in fact and the observance of
reasonable standards of fair dealing.

JUSTIFICATION: Due to New York State's struggling financial situation a
financial crisis emerged causing citizens to fall behind on their mort-
gages and in many instances leave or abandon their homes. In some
instances the foreclosing, institution will commence the process but not
follow through or delay taking control of the property which in some
instances can cause the property to become unmaintained and blighted in
the surrounding neighborhoods. This law would obligate mortgage foreclo-
sure plaintiffs to act in good faith and not delay in taking action in
controlling and providing upkeep on the vacant dwelling itself.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3534

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 5, 2013
                               ___________

Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community Development

AN  ACT  to  amend  the  real  property  actions and proceedings law, in
  relation to a plaintiff in a mortgage foreclosure action  obtaining  a
  judgment of foreclosure and sale in good faith

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

  Section 1. Subdivision 1 of section 1307 of the real property  actions
and  proceedings  law,  as  added by chapter 507 of the laws of 2009, is
amended to read as follows:
  1. A plaintiff in a mortgage foreclosure  action  who  IN  GOOD  FAITH
obtains  a judgment of foreclosure and sale pursuant to section thirteen
hundred fifty-one of this article, involving residential real  property,
as  defined  in  section  thirteen hundred five of this article, that is
vacant, or becomes vacant after the issuance of  such  judgment,  or  is
abandoned  by  the  mortgagor but occupied by a tenant, as defined under
section thirteen hundred five of this article, shall maintain such prop-
erty until such time as ownership has been transferred through the clos-
ing of title in foreclosure, or other disposition, and the deed for such
property has been duly recorded; provided, however, that  if  a  munici-
pality  or  governmental  entity  holds a mortgage subordinate to one or
more mortgages on the residential real  property,  the  municipality  or
governmental  entity  shall  not  be subject to the requirements of this
section.   AS USED IN THIS SECTION,  THE  TERM  "GOOD  FAITH"  SHALL  BE
DEFINED AS HONESTY IN FACT AND THE OBSERVANCE OF REASONABLE STANDARDS OF
FAIR DEALING.
  S 2. This act shall take effect immediately.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01068-01-3

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