What's happening
The Good Neighbor Act requires mortgage foreclosure plaintiffs to maintain vacant or abandoned residential properties in good faith until ownership transfers.
Why it matters
Expands responsibility. The bill clarifies that not just lenders, but also assignees and mortgage loan servicers, are responsible for property upkeep during foreclosure, broadening accountability to more parties involved in the foreclosure process.
Defines “good faith” maintenance. By specifying that “good faith” means honesty in fact and reasonable standards of fair dealing, the bill sets a clearer legal standard for how foreclosing parties must care for vacant or abandoned homes, making it easier to enforce and assess compliance.
Aims to protect neighborhoods. Requiring upkeep of vacant or abandoned properties seeks to prevent blight, maintain property values, and safeguard community safety and aesthetics while foreclosure proceedings are ongoing.
Exempts certain public entities. Municipalities or government agencies holding subordinate mortgages are exempted, recognizing their different role and possibly limited capacity in property management during foreclosures.
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Who cares
Headline styles
Make Banks Maintain Foreclosed Homes
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to judiciary
- Delivered to assembly
- Passed senateVote 42–18
- Ordered to third reading cal.776
- Reported and committed to rules
- Referred to housing, construction and community development
- Referred to housing, construction and community development
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.
Maintain Foreclosed Properties Responsibly
Assembly Floor Calendar · Sponsor Tremaine Wright
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4819
2019-2020 Regular Sessions
IN SENATE
March 26, 2019
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development
AN ACT to amend the real property actions and proceedings law, in relation to requiring a plaintiff in a mortgage foreclosure action to maintain the subject property in good faith
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. This act shall be known and may be cited as "The Good Neighbor Act".
§ 2. Subdivision 1 of section 1307 of the real property actions and proceedings law, as added by chapter 507 of the laws of 2009, is amended to read as follows:
1. A plaintiff [in] who commences a mortgage foreclosure action [who obtains], including a lender, an assignee or a mortgage loan servicer, seeking a judgment of foreclosure and sale pursuant to section thirteen hundred fifty-one of this article, involving residential real property, as defined in section thirteen hundred five of this article, that is vacant, or becomes vacant after commencement of the action or the issuance of such judgment, or is abandoned by the mortgagor but occupied by a tenant, as defined under section thirteen hundred five of this article, shall in good faith maintain such property until such time as ownership has been transferred through the closing of title in foreclosure, or other disposition, and the deed for such property has been duly recorded; provided, however, that if a municipality or governmental entity holds a mortgage subordinate to one or more mortgages on the residential real property, the municipality or governmental entity shall not be subject to the requirements of this section. As used in this section, the term "good faith" shall be defined as honesty in fact and the observance of reasonable standards of fair dealing.
§ 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09682-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property actions and proceedings law, in relation to requiring a plaintiff in a mortgage foreclosure action to maintain the subject property in good faith
Purpose
To require plaintiffs in mortgage foreclosure actions to Act in good faith at the commencement of a foreclosure action and throughout the foreclosure process
Summary of provisions
Section 1307 of the real property, actions and proceedings law is amended to require plaintiffs from the commencement of foreclosure proceedings to obtain a mortgage foreclosure in 'good faith' and defines 'good faith' as honesty in fact and the observance of reason able stand- ards of fair dealing.
Justification
Due to New York State's struggling financial situation a financial crisis emerged causing citizens to fall behind on their mortgages and in many instances leave or abandon their homes. In some instances the fore- closing 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 foreclosure plaintiffs to act in good faith when it commences a foreclosure and throughout the foreclosure process. Financial institutions cannot delay in taking action in controlling and providing upkeep on the vacant dwelling itself.
Legislative history
2017-18: S3640 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVEL- OPMENT 2015-16: S.1779/A.335 - Referred to Housing Construction and Community Development 2013-14: S.4055/A.7027 -Referred to Housing Construction and Community Development
Fiscal & local implications
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.