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Who cares
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Sponsors
No co-sponsors yet.
History
- Referred to housing, construction and community development
- Print number 1972a
- Amend and recommit to judiciary
- Referred to judiciary
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the real property actions and proceedings law, in relation to requiring a lender to ascertain the value of real property prior to commencing foreclosure proceedings
Purpose
Enactment of this measure would require a lender that is filing a lis pendens (notice of foreclosure) demonstrate that they have engaged in due diligence to assess the actual value of a property before starting a foreclosure.
Summary of provisions
Section 1 would amend the real property actions and proceedings law by adding a new section 1305 by requiring that any foreclosing party in a mortgage foreclosure obtain an assessment of the actual value of the property to be foreclosed upon.
Existing law
Under existing law, no foreclosing party is required to obtain the assessed value of the property prior to the actual foreclosure proceeding.
Justification
As part of the foreclosure process lenders fail to ascertain the value of a property prior to completing the actual foreclosure. By obtaining the value of the property, based on an accepted valuation of the property such as an appraisal or broker price opinion, the lender would need to make a determination as to whether or not they want the property before beginning the foreclosure process. If it is determined that the property is worth far less than the value of the distressed loan the lender may not choose to initiate the proceeding. If they choose to proceed with the action, it will be seen as a clear indication that the lender knows of the state of the property and the conditions they will be assuming once the proceeding is completed. This legislation was recommended by the Mayor's Anti-Flipping Task Force in Buffalo, New York in an effort to reduce the number of vacant properties in the city and to establish responsibility for repairs and maintenance.
Legislative history
New bill - 2008. Referred to Judiciary.
Fiscal implications
None to New York State.
Local fiscal implications
None.
Effective date
This act shall take effect on the 30th day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.