Senate Bill S8445B

2019-2020 Legislative Session

Imposes a temporary ban on the commencement of mortgage foreclosure actions and the sale of foreclosed properties

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Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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Bill Amendments

2019-S8445 - Details

See Assembly Version of this Bill:
A10553
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
Real Property Actions and Proceedings Law
Laws Affected:
Add §1393, RPAP L
Versions Introduced in Other Legislative Sessions:
2021-2022: S1599, A2456
2023-2024: A4273

2019-S8445 - Summary

Imposes a temporary ban on the commencement of mortgage foreclosure actions and the sale of foreclosed properties for 365 days after the last region or county enters into phase 3 of the governor's reopening plan relating to the COVID-19 pandemic.

2019-S8445 - Sponsor Memo

2019-S8445 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8445
 
                             I N  S E N A T E
 
                               June 3, 2020
                                ___________
 
 Introduced  by  Sen. SANDERS -- 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 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



              

2019-S8445A - Details

See Assembly Version of this Bill:
A10553
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
Real Property Actions and Proceedings Law
Laws Affected:
Add §1393, RPAP L
Versions Introduced in Other Legislative Sessions:
2021-2022: S1599, A2456
2023-2024: A4273

2019-S8445A - Summary

Imposes a temporary ban on the commencement of mortgage foreclosure actions and the sale of foreclosed properties for 365 days after the last region or county enters into phase 3 of the governor's reopening plan relating to the COVID-19 pandemic.

2019-S8445A - Sponsor Memo

2019-S8445A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8445--A
 
                             I N  S E N A T E
 
                               June 3, 2020
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community  Development  -- 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
              

2019-S8445B (ACTIVE) - Details

See Assembly Version of this Bill:
A10553
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
Real Property Actions and Proceedings Law
Laws Affected:
Add §1393, RPAP L
Versions Introduced in Other Legislative Sessions:
2021-2022: S1599, A2456
2023-2024: A4273

2019-S8445B (ACTIVE) - Summary

Imposes a temporary ban on the commencement of mortgage foreclosure actions and the sale of foreclosed properties for 365 days after the last region or county enters into phase 3 of the governor's reopening plan relating to the COVID-19 pandemic.

2019-S8445B (ACTIVE) - Sponsor Memo

2019-S8445B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8445--B
 
                             I N  S E N A T E
 
                               June 3, 2020
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community  Development  -- committee discharged, bill amended, ordered
   reprinted as amended and recommitted to said  committee  --  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,
 LENDERS OR SERVICERS ARE REQUIRED TO EITHER: (I)  SEND  THE  BORROWER  A
 NOTICE  OF  DEFAULT  IN  ACCORDANCE  WITH THE TERM OF THE MORTGAGE LOAN,
 WHICH SHALL INCLUDE A LIST OF STATE CERTIFIED HOUSING  COUNSELING  AGEN-
 CIES  AND  A  LIST  OF STATE FUNDED LEGAL SERVICES WHERE THE PROPERTY IS
 LOCATED. THIS REQUIREMENT IS NOT A SUBSTITUTE FOR  THE  NOTICE  REQUIRED
 UNDER SECTION THIRTEEN HUNDRED FOUR OF THIS ARTICLE; (II) PARTICIPATE IN
 THE MANDATORY SETTLEMENT CONFERENCE 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 REQUIRE-
 MENT SHALL NOT APPLY TO PENDING FORECLOSURE ACTIONS  WHERE  A  MORTGAGOR
 HAS  NOT  APPEARED AT A PRIOR SETTLEMENT CONFERENCE; OR (III) ENGAGE THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

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