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

                                   477

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  M. of A. RYAN -- read once and referred to the Committee
  on Judiciary

AN ACT to amend the  real  property  actions  and  proceedings  law,  in
  relation to requiring the provision of notice to mortgagors in default
  for thirty days or more

  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 1304-a to read as follows:
  S 1304-A. NOTICE TO MORTGAGORS IN DEFAULT FOR THIRTY DAYS OR MORE.  1.
WHEN  A MORTGAGOR OF RESIDENTIAL REAL PROPERTY, INCLUDING OWNER-OCCUPIED
ONE-TO-FOUR-FAMILY DWELLINGS, DEFAULTS ON SUCH MORTGAGE FOR THIRTY  DAYS
OR  MORE,  THE  LENDER, ASSIGNEE OR MORTGAGE LOAN SERVICER SHALL PROVIDE
NOTICE TO THE MORTGAGOR REGARDING INFORMATION AND ASSISTANCE  ABOUT  THE
FORECLOSURE PROCESS IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION.
  2. THE NOTICE REQUIRED BY THIS SECTION SHALL BE DELIVERED TO THE MORT-
GAGOR  BY  REGISTERED  OR  CERTIFIED  MAIL TO THE RESIDENCE WHICH IS THE
SUBJECT OF THE MORTGAGE NO LATER THAN FORTY-FIVE DAYS AFTER THE  MORTGA-
GOR DEFAULTS ON HIS OR HER MORTGAGE. THE NOTICE REQUIRED BY THIS SECTION
SHALL  BE  IN  BOLD, FOURTEEN-POINT TYPE AND SHALL BE PRINTED ON COLORED
PAPER THAT IS OTHER THAN THE COLOR OF ANY ADDITIONAL LETTER ACCOMPANYING
THE NOTICE. THE TITLE OF THE NOTICE SHALL BE  BOLD,  TWENTY-POINT  TYPE.
THE NOTICE SHALL BE ON ITS OWN PAGE.
  3.  THE NOTICE SHALL LIST THE NAME AND CONTACT INFORMATION FOR NO LESS
THAN ONE LEGAL SERVICE PROVIDER THAT IS APPROVED BY THE NEW  YORK  STATE
ATTORNEY  GENERAL THAT IS LOCATED WITHIN THE COUNTY WHERE SUCH MORTGAGED
RESIDENTIAL REAL PROPERTY IS LOCATED. THE NOTICE SHALL LIST THE NAME AND
CONTACT INFORMATION FOR NO LESS THAN ONE HOUSING COUNSELOR LOCATED WITH-
IN THE COUNTY OF THE MORTGAGOR AND APPROVED BY THE NEW YORK STATE ATTOR-
NEY GENERAL.

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

                                                           LBD00470-01-5

A. 477                              2

  4. THE NOTICE SHALL LIST CONTACT INFORMATION FOR THE  TOLL-FREE  FORE-
CLOSURE  HELPLINE  MAINTAINED BY THE NEW YORK STATE ATTORNEY GENERAL AND
THE TOLL-FREE HELPLINE MAINTAINED BY THE NEW YORK  STATE  DEPARTMENT  OF
FINANCIAL SERVICES.
  5.  THE  NOTICE TO ANY MORTGAGOR REQUIRED BY THIS SECTION SHALL APPEAR
AS FOLLOWS:
  "HELP FOR HOMEOWNERS IN DEFAULT ON A MORTGAGE FOR 30 DAYS OR MORE"
  "NEW YORK STATE LAW REQUIRES THAT WE SEND YOU THIS  NOTICE  ABOUT  THE
FORECLOSURE PROCESS. PLEASE READ IT CAREFULLY.
  YOU  ARE  CURRENTLY  IN  DEFAULT ON YOUR MORTGAGE FOR 30 DAYS OR MORE.
THIS IS NOT A FORECLOSURE NOTICE. THERE MAY BE SEVERAL WAYS IN WHICH YOU
CAN SAVE YOUR HOME. WE STRONGLY ENCOURAGE YOU  TO  CONTACT  ONE  OF  THE
HOUSING  COUNSELORS  OR  LOCAL  LEGAL SERVICE AGENCIES LISTED BELOW. THE
CONTACT INFORMATION FOR THE TOLL-FREE HELPLINE  MAINTAINED  BY  THE  NEW
YORK STATE ATTORNEY GENERAL AND THE TOLL-FREE HELPLINE MAINTAINED BY THE
NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES ARE ALSO LISTED BELOW.
  YOU  DO  NOT  NEED  TO  WAIT UNTIL YOUR HOME HAS BEEN FORECLOSED ON TO
RECEIVE HELP. NUMEROUS PROGRAMS MAY BE AVAILABLE TO YOU RIGHT NOW.  SOME
MORTGAGE  ASSISTANCE  PROGRAMS  HAVE STRICT TIME LIMITS. IF YOU WAIT TOO
LONG, THEN YOU MAY BECOME INELIGIBLE FOR ASSISTANCE  BY  SOME  OF  THESE
PROGRAMS.  PROFESSIONAL  HOUSING COUNSELORS AND ATTORNEYS MAY BE ABLE TO
ASSIST YOU IN ACCESSING THESE PROGRAMS FREE OF CHARGE.
  YOU HAVE THE RIGHT TO REMAIN IN YOUR HOME UNTIL A FORECLOSURE SALE  IS
SCHEDULED  AND  YOUR HOUSE IS SOLD AT THE AUCTION. THIS PROCESS MAY TAKE
UP TO SEVERAL YEARS. UNTIL SUCH TIME AS A  JUDGMENT  OF  FORECLOSURE  IS
ENTERED  BY A JUDGE AND THE HOUSE IS SOLD AT THE FORECLOSURE AUCTION, NO
ONE MAY FORCE YOU TO LEAVE YOUR HOME.  THIS  INCLUDES  THE  LENDER  THAT
HOLDS YOUR MORTGAGE.
  UNTIL  A  JUDGMENT  OF FORECLOSURE IS ENTERED, YOU ARE RESPONSIBLE FOR
THE UPKEEP OF YOUR HOME. THIS INCLUDES PAYMENT OF WATER BILLS,  PROPERTY
TAXES  (UNLESS THE LENDER IS PAYING SUCH TAXES), AND UPKEEP OF THE EXTE-
RIOR. IF YOU CHOOSE TO LEAVE YOUR HOME BEFORE A JUDGMENT OF  FORECLOSURE
IS  RENDERED,  YOU  ARE STILL RESPONSIBLE FOR THE UPKEEP OF THE HOME AND
THE EXTERIOR, INCLUDING THE YARD. FAILURE TO MAINTAIN THE  PROPERTY  MAY
RESULT IN ADDITIONAL COSTS ABOVE AND BEYOND THE FORECLOSURE PROCEEDINGS,
AS WELL AS BUILDING CODE VIOLATIONS WHICH, IF NOT ADDRESSED, MAY LEAD TO
AN ARREST WARRANT.
  LEGAL SERVICE PROVIDERS:...........(ENTER NAME AND CONTACT INFORMATION
FOR PROVIDER).
  HOUSING  COUNSELOR:..........(ENTER  NAME  AND CONTACT INFORMATION FOR
HOUSING COUNSELOR).
  NEW YORK  STATE  ATTORNEY  GENERAL'S  TOLL-FREE  HOTLINE........(ENTER
NUMBER)  OR  VISIT  THE ATTORNEY GENERAL'S WEBSITE AT.........(ENTER WEB
ADDRESS)
  NEW  YORK  STATE   DEPARTMENT   OF   FINANCIAL   SERVICES'   TOLL-FREE
HOTLINE..........(ENTER   NUMBER)  OR  VISIT  THE  DEPARTMENT'S  WEBSITE
AT..........(ENTER WEB ADDRESS)"
  6. THE ATTORNEY GENERAL SHALL PRESCRIBE THE TELEPHONE NUMBER  AND  WEB
ADDRESS TO BE INCLUDED IN THE NOTICE.
  7.  THE DEPARTMENT OF FINANCIAL SERVICES SHALL PRESCRIBE THE TELEPHONE
NUMBER AND WEB ADDRESS TO BE INCLUDED IN THE NOTICE.
  S 2. This act shall take effect immediately.