In 2009, Governor Paterson signed foreclosure legislation aimed at protecting homeowners and tenants.
Protection For Homeowners:
NY foreclosure law now requires that a 90-day pre-foreclosure notice be sent to all homeowners facing foreclosure. This notice is sent prior to the start of the foreclosure action and allows additional time for many homeowners to work with their lenders to prevent foreclosure. Previously, this notice was only sent to homeowners who had sub-prime loans. Caveat: The 90-day notice period shall not apply, or shall cease to apply, if the homeowner does not occupy the 1-4 family dwelling as their principal residence.
This legislation also expanded the scope of the mandatory foreclosure settlement conference to include borrowers of all home loans. The foreclosure settlement conference provides the homeowner with an opportunity to negotiate a loan modification with their lender. Previously, foreclosure settlement conferences were only available to homeowners who had sub-prime loans.
Protection For Tenants:
NY foreclosure law now requires that tenants, residing in foreclosed properties, receive written notification of the change in ownership of the property. The law also requires that the tenant be allowed to remain in the the foreclosed home for the remainder of their lease term or 90 days, whichever is longer.
New York Foreclosure Attorney
As always, the Law Firm of Vaughn, Weber & Prakope, PLLC is here to assist you. Contact us at (516) 858-2620 to arrange a consultation with a foreclosure defense attorney.