Provides for legal representation in certain mortgage foreclosure actions

BILL NUMBER:A464

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 1304 of the real property 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 surro- gate court cases. However, no such right exists when a New York State resident is threatened with the loss of his or her home. The overwhelm- ing 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

New Bill 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.