S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10553
 
                           I N  A S S E M B L Y
 
                               May 29, 2020
                                ___________
 
 Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Hyndman) --
   read once and referred to the Committee on Judiciary
 
 AN ACT to amend the  real  property  actions  and  proceedings  law,  in
   relation  to  imposing a temporary ban on the commencement of mortgage
   foreclosure actions and the sale of foreclosed properties; and provid-
   ing for the repeal of such provisions upon expiration thereof

   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 1393 to read as follows:
   §  1393.  TEMPORARY BAN ON FORECLOSURE ACTIONS AND SALES OF FORECLOSED
 PROPERTIES. 1.  IF A MORTGAGE FORECLOSURE ACTION FOR  A  RESIDENTIAL  OR
 COMMERCIAL  REAL PROPERTY IS FILED IN A COURT DURING THE COVERED PERIOD,
 THE COURT SHALL STAY THE PROCEEDINGS UNTIL A DATE FOLLOWING THE  END  OF
 THE COVERED PERIOD, TO BE DETERMINED BY THE COURT.
   2. ANY SALE, FORECLOSURE, OR SEIZURE, FOR A BREACH OF AN OBLIGATION BY
 A  MORTGAGOR,  UNDER  THIS  CHAPTER, OF A RESIDENTIAL OR COMMERCIAL REAL
 PROPERTY SHALL BE PROHIBITED DURING THE COVERED PERIOD.
   3. FOR THE PURPOSES OF THIS SECTION, THE  TERM  "THE  COVERED  PERIOD"
 SHALL  MEAN  THE  PERIOD OF TIME BEGINNING ON THE EFFECTIVE DATE OF THIS
 SECTION AND ENDING ON THE ONE HUNDRED TWENTIETH DAY FOLLOWING THE EFFEC-
 TIVE DATE OF THIS SECTION.
   § 2. This act shall take effect immediately and shall  expire  and  be
 deemed repealed 1 year after such effective date.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD16379-01-0



              

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                 10553--A
 
                           I N  A S S E M B L Y
 
                               May 29, 2020
                                ___________
 
 Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Hyndman) --
   read once and referred to the  Committee  on  Judiciary  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to  amend  the  real  property  actions and proceedings law, in
   relation to imposing a temporary ban on the commencement  of  mortgage
   foreclosure actions and the sale of foreclosed properties; and provid-
   ing for the repeal of such provisions upon expiration thereof
 
   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 1393 to read as follows:
   § 1393. TEMPORARY BAN ON FORECLOSURE ACTIONS AND SALES  OF  FORECLOSED
 PROPERTIES.  1.  EXCEPT  WITH RESPECT TO A VACANT OR ABANDONED PROPERTY,
 STATE REGULATED SERVICERS, BANKS AND/OR CREDIT UNIONS OF A MORTGAGE LOAN
 MAY NOT INITIATE ANY JUDICIAL PROCESS, MOVE FOR A  FORECLOSURE  JUDGMENT
 OR  EXECUTE  A  FORECLOSURE-RELATED EVICTION OR FORECLOSURE SALE OF REAL
 PROPERTIES FOR TWELVE MONTHS AFTER THE  DATE  THAT  THE  COVERED  PERIOD
 ENDS.
   2.  (A)  DURING SUCH MORATORIUM PERIOD, STATE REGULATED MORTGAGEES ARE
 REQUIRED TO EITHER: (I) PARTICIPATE IN THE MANDATORY SETTLEMENT  CONFER-
 ENCE  PURSUANT  TO  RULE THIRTY-FOUR HUNDRED EIGHT OF THE CIVIL PRACTICE
 LAW AND RULES FOR ALL  PENDING  FORECLOSURE  ACTIONS  INCLUDING  ACTIONS
 WHERE  THE  MORTGAGOR  APPEARED AT A PRIOR SETTLEMENT CONFERENCE AND THE
 CASE WAS MARKED UNSETTLED. THIS REQUIREMENT SHALL NOT APPLY  TO  PENDING
 FORECLOSURE  ACTIONS  WHERE  A  MORTGAGOR  HAS  NOT  APPEARED AT A PRIOR
 SETTLEMENT CONFERENCE; OR (II) ENGAGE THE MORTGAGORS IN  A  PRE-FORECLO-
 SURE  WORKOUT  TO  NEGOTIATE IN GOOD FAITH A MODIFICATION OR FORBEARANCE
 AGREEMENTS IN ACCORDANCE WITH RULE  THIRTY-FOUR  HUNDRED  EIGHT  OF  THE
 CIVIL PRACTICE LAW AND RULES.
   (B)  THE  MORTGAGORS MUST DEMONSTRATE COMPLIANCE WITH THIS REQUIREMENT
 IN ORDER TO COMMENCE OR PROCEED WITH  A  FORECLOSURE  ACTION  AFTER  THE
 COVERED  PERIOD HAS EXPIRED.  FAILURE TO DEMONSTRATE COMPLIANCE SHALL BE
 AN AFFIRMATIVE DEFENSE TO THE FORECLOSURE ACTION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16379-03-0

 A. 10553--A                         2
 
   3. FOR THE PURPOSES OF THIS SECTION, THE  TERM  "THE  COVERED  PERIOD"
 SHALL MEAN FROM THE DATE THE GOVERNOR DECLARED A STATE OF DISASTER EMER-
 GENCY  OR  MARCH SEVENTH, TWO THOUSAND TWENTY UNTIL THREE HUNDRED SIXTY-
 FIVE DAYS AFTER THE DATE THE LAST REGION AND/OR COUNTY OF NEW YORK STATE
 ENTERED  PHASE  THREE  OF  THE  GOVERNOR'S  REOPENING PLAN FOR THE STATE
 RELATING TO THE COVID-19 PANDEMIC.
   § 2. This act shall take effect immediately and shall  expire  and  be
 deemed repealed 1 year after such effective date.