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Sponsors
2 Co-sponsors
History
- Referred to judiciary
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Prohibits mortgagee from refusing to accept partial mortgage payments
In Assembly Committee · Judiciary · Sponsor Michele Titus
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S317
Title of bill
An act to amend the real property law, in relation to prohibiting mortgagee from refusing to accept partial mortgage payments
Purpose
To require that banks, lenders and mortgagees accept partial mortgage payments which represent at a minimum a mortgage payment but not the total arrearages that may be due and owing.
Summary of provisions
Section 1. Amends the Real Property Tax law by adding a new section 254-e. Provides that no mortgagee shall refuse to accept partial payment on a mortgage which does not bring the mortgagor current on the mortgage debt.
Section 2. Effective Date
Existing law
None.
Justification
Due to the state of the economy, many people may find themselves in dire straits, due to loss of employment, under-employment, or illness. Despite these circumstances, many people are still attempting to pay their mortgage obligations and many may fall into arrears.
The banks, lenders or mortgagees have taken the position that they will only accept the total amount of the arrearages or if they do take a payment, they will not apply it to the outstanding indebtedness while placing it into a special account which gains interest; but neither the payment or interest is credited to the mortgagor's arrearages on their mortgage.
The provisions of this proposed section will allow payments to be received and credited and will not act as a bar to any procedural rights of the banks, lenders or mortgagees.
The aim of this bill is to forestall foreclosures and give mortgagors an incentive and opportunity to redeem their property; and limit the destructive effects of foreclosure and its concomitant societal concerns.
Legislative history
2012: S.6541 - Referred to Judiciary/A.8040 - Referred to Judiciary 2011: A.8040 - Referred to Banks, Reference changed to Judiciary
Fiscal implications
None.
Effective date
Takes effect on the thirtieth day after it shall become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.