S T A T E   O F   N E W   Y O R K
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                                  3261

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 15, 2011
                               ___________

Introduced by Sen. ESPAILLAT -- 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  and  the
  county  law,  in  relation  to  representation  of  certain persons in
  private residential foreclosure actions

  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 1308 to read as follows:
  S 1308. ASSIGNMENT OF COUNSEL. A HOMEOWNER IN A FORECLOSURE ACTION WHO
IS  FINANCIALLY  UNABLE  TO  OBTAIN  COUNSEL  FOR REPRESENTATION IN SUCH
ACTION SHALL HAVE A RIGHT TO ASSIGNED COUNSEL BY THE COURT.   ASSIGNMENT
OF COUNSEL ISSUED UNDER THIS SECTION SHALL BE IMPLEMENTED AS PROVIDED IN
ARTICLE EIGHTEEN-B OF THE COUNTY LAW.
  S  2.  Subdivision  3 of section 1303 of the real property actions and
proceedings law, as amended by chapter 507  of  the  laws  of  2009,  is
amended to read as follows:
  3.  The  notice to any mortgagor required by paragraph (a) of subdivi-
sion one of this section shall appear as follows:
                   Help for Homeowners in Foreclosure
  New York State Law requires that we send you  this  notice  about  the
foreclosure process. Please read it carefully.
Summons and Complaint
  You  are  in danger of losing your home. If you fail to respond to the
summons and complaint in this foreclosure  action,  you  may  lose  your
home.  Please read the summons and complaint carefully. You should imme-
diately contact an attorney or your local legal  aid  office  to  obtain
advice on how to protect yourself.
Sources of Information and Assistance

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04676-01-1

              

S. 3261                             2

  The  State  encourages  you  to  become informed about your options in
foreclosure. In addition to seeking assistance from an attorney or legal
aid office, there are government agencies and  non-profit  organizations
that  you  may contact for information about possible options, including
trying  to  work with your lender during this process.  YOU MAY BE ENTI-
TLED TO ASSIGNED COUNSEL IF YOU ARE FINANCIALLY UNABLE TO OBTAIN  REPRE-
SENTATION.
  To  locate  an  entity  near  you, you may call the toll-free helpline
maintained by the New York State Banking Department at (enter number) or
visit the Department's website at (enter web address).
Foreclosure rescue scams
  Be careful of people who approach you with offers to "save" your home.
There are individuals who watch for notices of  foreclosure  actions  in
order  to  unfairly  profit  from  a homeowner's distress. You should be
extremely careful about any such promises and any suggestions  that  you
pay  them a fee or sign over your deed. State law requires anyone offer-
ing such services for profit  to  enter  into  a  contract  which  fully
describes  the services they will perform and fees they will charge, and
which prohibits them from taking any money  from  you  until  they  have
completed all such promised services.
  S 3. The article heading of article 18-B of the county law, as amended
by chapter 682 of the laws of 1977, is amended to read as follows:
     REPRESENTATION OF PERSONS ACCUSED OF CRIME OR PARTIES BEFORE THE
       FAMILY COURT OR SURROGATE'S COURT OR IN CERTAIN FORECLOSURE
                                 ACTIONS
  S  4.  The  opening  paragraph  of  section  722 of the county law, as
amended by chapter 7 of the laws of 2007, is amended to read as follows:
  The governing body of each county and the governing body of  the  city
in  which a county is wholly contained shall place in operation through-
out the county a plan for providing counsel to persons  charged  with  a
crime  or  who  are  entitled to counsel pursuant to section two hundred
sixty-two or section eleven hundred twenty  of  the  family  court  act,
article  six-C  of the correction law, section four hundred seven of the
surrogate's court procedure act [or], article ten of the mental  hygiene
law  OR  SECTION THIRTEEN HUNDRED EIGHT OF THE REAL PROPERTY ACTIONS AND
PROCEEDINGS LAW, who are financially unable to obtain counsel. Each plan
shall also provide for investigative, expert and other  services  neces-
sary  for  an  adequate  defense.  The  plan shall conform to one of the
following:
  S 5. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.