senate Bill S1723

2013-2014 Legislative Session

Provides for legal representation in certain mortgage foreclosure actions

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to housing, construction and community development
Jan 09, 2013 referred to housing, construction and community development

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S1723 - Bill Details

See Assembly Version of this Bill:
A4193
Current Committee:
Law Section:
Real Property Actions and Proceedings Law
Laws Affected:
Add §1308, amd §1303, RPAP L; amd Art 18-B Art head & §722, County L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S3261, A1310
2009-2010: A464

S1723 - Bill Texts

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Provides for free legal representation in certain mortgage foreclosure actions where the homeowner is financially unable to obtain counsel; requires notice of such availability.

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BILL NUMBER:S1723

TITLE OF BILL:
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

PURPOSE:
This amendment would provide a home owner in a foreclosure preceding
who is financially unable to obtain counsel with the right to
assigned counsel by the court.

SUMMARY OF PROVISIONS:

Section 1308 of the real property Actions and Proceedings Law is
amended to assign counsel to homeowners in a foreclosure proceeding
who are financially unable to obtain counsel.

JUSTIFICATION:
Present law provides a right to court-appointed counsel in limited
civil litigation matters, including certain family or surrogate court
cases. However, no such right exists when a New York State resident
is threatened with the loss of his or her home. The overwhelming
majority of homeowners in foreclosure proceeding have no legal
representation. As the subprime lending crisis sweeps across New York
State, it is estimated that tens of thousands of state residents may
face foreclosure in the near future. This bill will confront this
crisis and prevent dramatic declines in home ownership by providing a
right to legal representation for those who cannot afford it.

LEGISLATIVE HISTORY:
01/06/10: A.464 - Referred to Housing

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall become law.

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

                                  1723

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by Sens. ESPAILLAT, KRUEGER, MONTGOMERY, PARKER -- 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 and as
further amended by section 104 of part A of chapter 62 of  the  laws  of
2011, 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05007-01-3

S. 1723                             2

Sources of Information and Assistance
  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 Department of Financial Services 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.

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