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This entry was published on 2019-04-19
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SECTION 1304
Required prior notices
Real Property Actions & Proceedings (RPA) CHAPTER 81, ARTICLE 13
§ 1304. Required prior notices. 1. Notwithstanding any other provision
of law, with regard to a home loan, at least ninety days before a
lender, an assignee or a mortgage loan servicer commences legal action
against the borrower, or borrowers at the property address and any other
address of record, including mortgage foreclosure, such lender, assignee
or mortgage loan servicer shall give notice to the borrower in at least
fourteen-point type which shall include the following:

"YOU MAY BE AT RISK OF FORECLOSURE. PLEASE READ THE FOLLOWING NOTICE

CAREFULLY"

"As of ___, your home loan is ___ days and ___ dollars in default.
Under New York State Law, we are required to send you this notice to
inform you that you are at risk of losing your home.

Attached to this notice is a list of government approved housing
counseling agencies in your area which provide free counseling. You can
also call the NYS Office of the Attorney General's Homeowner Protection
Program (HOPP) toll-free consumer hotline to be connected to free
housing counseling services in your area at 1-855-HOME-456
(1-855-466-3456), or visit their website at http://www.aghomehelp.com/.
A statewide listing by county is also available at
http://www.dfs.ny.gov/consumer/mortg nys np counseling agencies.htm.
Qualified free help is available; watch out for companies or people who
charge a fee for these services.

Housing counselors from New York-based agencies listed on the website
above are trained to help homeowners who are having problems making
their mortgage payments and can help you find the best option for your
situation. If you wish, you may also contact us directly at __________
and ask to discuss possible options.

While we cannot assure that a mutually agreeable resolution is
possible, we encourage you to take immediate steps to try to achieve a
resolution. The longer you wait, the fewer options you may have.

If you have not taken any actions to resolve this matter within 90
days from the date this notice was mailed, we may commence legal action
against you (or sooner if you cease to live in the dwelling as your
primary residence.)

If you need further information, please call the New York State
Department of Financial Services' toll-free helpline at (show number) or
visit the Department's website at (show web address).

IMPORTANT: You have the right to remain in your home until you receive
a court order telling you to leave the property. If a foreclosure action
is filed against you in court, you still have the right to remain in the
home until a court orders you to leave. You legally remain the owner of
and are responsible for the property until the property is sold by you
or by order of the court at the conclusion of any foreclosure
proceedings. This notice is not an eviction notice, and a foreclosure
action has not yet been commenced against you.

1-a. Notwithstanding any other provision of law, with regard to a
reverse mortgage home loan, at least ninety days before a lender, an
assignee or a mortgage loan servicer commences legal action against the
borrower or borrowers at the property address and any other addresses of
record, including reverse mortgage foreclosure, such lender, assignee or
mortgage loan servicer shall give notice to the borrower in at least
fourteen-point type except for the heading which shall be in at least
sixteen-point type which shall include the following:

"YOU COULD LOSE YOUR HOME TO FORECLOSURE.

PLEASE READ THE FOLLOWING NOTICE CAREFULLY.
Date
Borrower's address
Loan Number:
Property Address:
Dear Borrower(s):
As of ___________, we as your lender or servicer claim that your reverse
mortgage loan is ___ days in default. Under New York State Law, we are
required to send you this notice to inform you that you may be at risk
of losing your home.
We, the lender or servicer of your loan, are claiming that your reverse
mortgage loan is in default because you have not complied with the
following conditions of your loan:
_____ You are not occupying your home as your principal residence
_____ You did not submit the required annual certificate of occupancy
_____ The named borrower on the reverse mortgage has died
_____ You did not pay property taxes

{Servicer name} paid your property taxes for the following

time periods:___________________________

______________________ {quarter/year}
_____ You did not maintain homeowner's insurance

{Servicer name} purchased homeowner's insurance for you on the

following date(s) and for the following cost(s):

____________________________________
_____ You did not pay water/sewer charges

{Servicer name} paid water/sewer charges for you on the

following date(s) and for the following cost(s):

________________________
_____ You did not make required repairs to your home
If the claim is based on your failure to pay property or water and sewer
charges or maintain homeowner's insurance, you can cure this default by
making the payment of $____________ for the advancements we made towards
these payments on your behalf.
You have the right to dispute the claims listed above by contacting us,
by calling ___________ or sending a letter to __________________. This
may include proof of payments made for property taxes or water and sewer
charges or a current declaration page from your insurance company, or
any other proof to dispute the servicer's claim.
If you are in default for failure to pay property charges (property
taxes, homeowner's insurance and/or water/sewer charges) you may qualify
for a grant, loan, or re-payment plan to cure the default balance owed.
If you are in default due to the death of your spouse, you may be
considered an eligible "Non-Borrowing Spouse" under a HUD program which
allows you to remain in your home for the rest of your life.
If you are over the age of 80 and have a long term illness, you may also
qualify for the "At-Risk Extension," which allows you to remain in your
home for one additional year and requires an annual re-certification.
Attached to this notice is a list of government-approved housing
counseling agencies and legal services in your area which provide free
counseling. You can also call the NYS Office of the Attorney General's
Homeowner Protection Program (HOPP) toll-free consumer hotline to be
connected to free housing counseling services in your area at
1-855-HOME-456 (1-855-466-3456), or visit their website at
http://www.aghomehelp.com. A statewide listing by county is also
available at
http://www.dfs.ny.gov/consumer/mortg nys np counseling agencies.htm.
You may also call your local Department of Aging for a referral or call
311 if you live in New York City.
Qualified free help is available; watch out for companies or people who
charge a fee for these services.
You may also contact us directly at __________ and ask to discuss all
possible options to allow you to cure your default and prevent the
foreclosure of your home. While we cannot ensure that a resolution is
possible, we encourage you to take immediate steps to try to achieve a
resolution. The longer you wait, the fewer options you may have.
If you have not taken any actions to resolve this matter within 90 days
from the date this notice was mailed, we may commence legal action
against you (or sooner if you cease to live in the dwelling as your
primary residence).
If you need further information, please call the New York State
Department of Financial Services' toll-free helpline at 877-226-5697 or
visit the Department's website at http://www.dfs.ny.gov.
IMPORTANT: You have the right to remain in your home until you receive a
court order telling you to leave the property. If a foreclosure action
is filed against you in court, you still have the right to remain in the
home until a court orders you to leave. You legally remain the owner of
and are responsible for the property until the property is sold by you
or by order of the court at the conclusion of any foreclosure
proceedings. This notice is not an eviction notice, and a foreclosure
action has not yet been commenced against you."

A lender, assignee or mortgage loan servicer of a reverse mortgage
home loan which provides notice to the borrower as required by this
subdivision is not required to provide notice to such borrower with
regard to such loan pursuant to subdivision one of this section.

2. The notices required by this section shall be sent by such lender,
assignee (including purchasing investor) or mortgage loan servicer to
the borrower, by registered or certified mail and also by first-class
mail to the last known address of the borrower, and to the residence
that is the subject of the mortgage. The notices required by this
section shall be sent by the lender, assignee or mortgage loan servicer
in a separate envelope from any other mailing or notice. Notice is
considered given as of the date it is mailed. The notices required by
this section shall contain a current list of at least five housing
counseling agencies serving the county where the property is located
from the most recent listing available from department of financial
services. The list shall include the counseling agencies' last known
addresses and telephone numbers. The department of financial services
shall make available on its websites a listing, by county, of such
agencies. The lender, assignee or mortgage loan servicer shall use such
lists to meet the requirements of this section.

3. The ninety day period specified in the notices contained in
subdivisions one and one-a of this section shall not apply, or shall
cease to apply, if the borrower has filed for bankruptcy protection
under federal law, or if the borrower no longer occupies the residence
as the borrower's principal dwelling. Nothing herein shall relieve the
lender, assignee or mortgage loan servicer of the obligation to send
such notices, which notices shall be a condition precedent to commencing
a foreclosure proceeding.

4. The notices required by this section and the ninety day period
required by subdivisions one and one-a of this section need only be
provided once in a twelve month period to the same borrower in
connection with the same loan and same delinquency. Should a borrower
cure a delinquency but re-default in the same twelve month period, the
lender shall provide a new notice pursuant to this section.

5. For any borrower known to have limited English proficiency, the
notices required by subdivisions one and one-a of this section shall be
in the borrower's native language (or a language in which the borrower
is proficient), provided that the language is one of the six most common
non-English languages spoken by individuals with limited English
proficiency in the state of New York, based on United States census
data. The department of financial services shall post the notices
required by subdivisions one and one-a of this section on its website in
the six most common non-English languages spoken by individuals with
limited English proficiency in the state of New York, based on the
United States census data.

6. (a) (1) "Home loan" means a loan, including an open-end credit
plan, in which:

(i) The borrower is a natural person;

(ii) The debt is incurred by the borrower primarily for personal,
family, or household purposes;

(iii) The loan is secured by a mortgage or deed of trust on real
estate improved by a one to four family dwelling, or a condominium unit,
in either case, used or occupied, or intended to be used or occupied
wholly or partly, as the home or residence of one or more persons and
which is or will be occupied by the borrower as the borrower's principal
dwelling; and

(iv) The property is located in this state.

(2) A home loan shall include a loan secured by a reverse mortgage
that meets the requirements of clauses (i) through (iv) of subparagraph
one of this paragraph.

7. The department of financial services shall prescribe the telephone
number and web address to be included in the notice.