What's happening
This bill requires lenders to notify homeowners in default for 30 days or more about foreclosure assistance and resources.
Why it matters
Directs lenders to give clear, prominent notice to homeowners soon after they fall behind. The bill requires lenders to send a specially formatted, easy-to-read notice (in bold, large type and on colored paper) to homeowners who are 30+ days late on their mortgage, making it harder for such crucial information to be overlooked or disregarded.
Connects homeowners in default with local, state-approved help. The notice must include contact information for at least one legal service provider and one housing counselor, both approved by the NY Attorney General and located in the homeowner’s county. This increases the likelihood that struggling homeowners will get free, trustworthy assistance close to where they live.
Clarifies homeowners’ rights during foreclosure and stresses urgency. The notice explains that homeowners can remain in their home until an actual foreclosure sale, often years away, but also warns that waiting too long may disqualify them from some assistance programs. This helps people make informed choices and avoid scams or panic-driven decisions.
Ensures access to state foreclosure hotlines and resources. By mandating inclusion of the Attorney General’s and Department of Financial Services’ toll-free helplines and websites, the bill gives homeowners immediate access to official, reliable information and support, increasing transparency and reducing confusion in a stressful process.
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Who cares
Residential mortgage borrowers
Those in default for 30 days or more would receive a notice explaining foreclosure, assistance options and property upkeep responsibilities.
Mortgage lenders, assignees and servicers
They would have to send the prescribed notice by registered or certified mail no later than 45 days after default and meet specific formatting requirements.
Legal service providers and housing counselors
The notice would have to list at least one attorney general-approved provider of each type in the specified county.
New York State Attorney General and Department of Financial Services
Each would prescribe its helpline number and website address for inclusion in the notice.
Headline styles
Notify Homeowners of Mortgage Default
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to judiciary
- Referred to judiciary
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6106
2019-2020 Regular Sessions
IN ASSEMBLY
February 28, 2019
Introduced by M. of A. RYAN -- read once and referred to the Committee on Judiciary
AN ACT to amend the real property actions and proceedings law, in relation to requiring the provision of notice to mortgagors in default for thirty days or more
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The real property actions and proceedings law is amended by adding a new section 1304-a to read as follows:
§ 1304-a. Notice to mortgagors in default for thirty days or more. 1. When a mortgagor of residential real property, including owner-occupied one-to-four-family dwellings, defaults on such mortgage for thirty days or more, the lender, assignee or mortgage loan servicer shall provide notice to the mortgagor regarding information and assistance about the foreclosure process in accordance with the provisions of this section.
2. The notice required by this section shall be delivered to the mortgagor by registered or certified mail to the residence which is the subject of the mortgage no later than forty-five days after the mortgagor defaults on his or her mortgage. The notice required by this section shall be in bold, fourteen-point type and shall be printed on colored paper that is other than the color of any additional letter accompanying the notice. The title of the notice shall be bold, twenty-point type. The notice shall be on its own page.
3. The notice shall list the name and contact information for no less than one legal service provider that is approved by the New York state attorney general that is located within the county where such mortgaged residential real property is located. The notice shall list the name and contact information for no less than one housing counselor located within the county of the mortgagor and approved by the New York state attorney general.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07939-01-9
A. 6106 2
4. The notice shall list contact information for the toll-free foreclosure helpline maintained by the New York state attorney general and the toll-free helpline maintained by the New York state department of financial services.
5. The notice to any mortgagor required by this section shall appear as follows:
"HELP FOR HOMEOWNERS IN DEFAULT ON A MORTGAGE FOR 30 DAYS OR MORE"
"New York State Law requires that we send you this notice about the foreclosure process. Please read it carefully.
You are currently in default on your mortgage for 30 days or more. This is NOT a foreclosure notice. There may be several ways in which you can save your home. We strongly encourage you to contact one of the housing counselors or local legal service agencies listed below. The contact information for the toll-free Helpline maintained by the New York State Attorney General and the toll-free Helpline maintained by the New York State Department of Financial Services are also listed below.
You do not need to wait until your home has been foreclosed on to receive help. Numerous programs may be available to you right now. Some mortgage assistance programs have strict time limits. If you wait too long, then you may become ineligible for assistance by some of these programs. Professional housing counselors and attorneys may be able to assist you in accessing these programs free of charge.
You have the right to remain in your home until a foreclosure sale is scheduled and your house is sold at the auction. This process may take up to several years. Until such time as a judgment of foreclosure is entered by a judge and the house is sold at the foreclosure auction, no one may force you to leave your home. This includes the lender that holds your mortgage.
Until a judgment of foreclosure is entered, you are responsible for the upkeep of your home. This includes payment of water bills, property taxes (unless the lender is paying such taxes), and upkeep of the exterior. If you choose to leave your home before a judgment of foreclosure is rendered, you are still responsible for the upkeep of the home and the exterior, including the yard. Failure to maintain the property may result in additional costs above and beyond the foreclosure proceedings, as well as building code violations which, if not addressed, may lead to an arrest warrant.
Legal Service Providers:...........(enter name and contact information for provider).
Housing Counselor:..........(enter name and contact information for housing counselor).
New York State Attorney General's toll-free hotline........(enter number) or visit the Attorney General's website at.........(enter web address)
New York State Department of Financial Services' toll-free hotline..........(enter number) or visit the Department's website at..........(enter web address)"
6. The attorney general shall prescribe the telephone number and web address to be included in the notice.
7. The department of financial services shall prescribe the telephone number and web address to be included in the notice.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.