senate Bill S4055

2013-2014 Legislative Session

Requires a plaintiff in a mortgage foreclosure action to maintain the subject property in good faith

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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
Mar 06, 2013 referred to housing, construction and community development

Co-Sponsors

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S4055 - Bill Details

See Assembly Version of this Bill:
A7027
Current Committee:
Law Section:
Real Property Actions and Proceedings Law
Laws Affected:
Amd §1307, RPAP L

S4055 - Bill Texts

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Requires a plaintiff in a mortgage foreclosure action to maintain the subject property in good faith.

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BILL NUMBER:S4055

TITLE OF BILL: An act to amend the real property actions and
proceedings law, in relation to requiring a plaintiff in a mortgage
foreclosure action to maintain the subject property in good faith

PURPOSE: To require plaintiffs in mortgage foreclosure actions to Act
in good faith at the commencement of a foreclosure action and
throughout the foreclosure process

SUMMARY OF PROVISIONS:

Section 1307 of the real property, actions and proceedings law is
amended to require plaintiffs from the commencement of foreclosure
proceedings 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
mortgages 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 foreclosure plaintiffs to act in good faith when it commences
a foreclosure and throughout the foreclosure process. Financial
institutions cannot delay in taking action in controlling and
providing upkeep on the vacant dwelling itself.

LEGISLATIVE HISTORY: This is a new bill.

FISCAL & LOCAL IMPLICATIONS: None.

EFFECTIVE DATE: Immediately after the bill has become law.

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

                                  4055

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              March 6, 2013
                               ___________

Introduced  by  Sen.  GIPSON -- 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 requiring a plaintiff in a mortgage foreclosure action  to
  maintain the subject property in good faith

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

  Section 1. This act shall be known and  may  be  cited  as  "The  Good
Neighbor Act".
  S  2.  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] WHO COMMENCES a mortgage foreclosure  action  [who
obtains],  INCLUDING  A LENDER, AN ASSIGNEE OR A MORTGAGE LOAN SERVICER,
SEEKING 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 COMMENCEMENT OF THE ACTION OR the issu-
ance of such judgment, or is abandoned by the mortgagor but occupied  by
a  tenant,  as defined under section thirteen hundred five of this arti-
cle, shall IN GOOD FAITH maintain  such  property  until  such  time  as
ownership  has been transferred through the closing of title in foreclo-
sure, or other disposition, and the deed for such property has been duly
recorded; provided, however, that  if  a  municipality  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 3. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01068-04-3

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