Relates to a plaintiff in a mortgage foreclosure action obtaining a judgment of foreclosure and sale in good faith

3 Co-sponsors

• John A. DeFrancisco
• Kathleen A. Marchione
• Joseph E. Robach

BILL NUMBER:S3534

Title of bill

An act to amend the real property actions and proceedings law, in relation to a plaintiff in a mortgage foreclosure action obtaining a judgment of foreclosure and sale in good faith

Purpose

To require plaintiffs in mortgage foreclosure actions to act in good faith when foreclosing on a property.

Summary of provisions

Section 1307 of the real property, actions and proceedings law is amended to require plaintiffs to obtain a mortgage foreclosure in 'good faith' and defines 'good faith' as honesty in fact and the observance of reasonable standards of fair dealing.

Justification

Due to New York State's struggling financial situation a financial crisis emerged causing citizens to fall behind on their mort- gages and in many instances leave or abandon their homes. In some instances the foreclosing, institution will commence the process but not follow through or delay taking control of the property which in some instances can cause the property to become unmaintained and blighted in the surrounding neighborhoods. This law would obligate mortgage foreclo- sure plaintiffs to act in good faith and not delay in taking action in controlling and providing upkeep on the vacant dwelling itself.

Legislative history

New Bill.

Fiscal implications

None.

Effective date

This act shall take effect immediately.