The New York State Assembly recently passed legislation that will protect homeowners facing foreclosure, as well as tenants living in buildings being foreclosed upon.
The legislation, supported by New York State Assemblyman Fred W. Thiele Jr., focuses on reform measures to expand consumer protections to all distressed homeowners, beyond those with sub-prime or non-traditional mortgages. All struggling homeowners would be able to participate in pre-foreclosure settlement conferences and would be required to receive a notice from lenders 90 days before legal action is commenced.
The legislation also establishes a data-collection program to help the state identify distressed homeowners and target counseling to them.
According to a release sent by Mr. Thiele, the legislation is meant to: authorize and regulate “shared appreciation” agreements between lenders and borrowers; ensure a speedy settlement conference process; expand notice to co-op owners subject to default; grant tenants the right to remain in foreclosed-upon properties until the end of the lease, if there is a lease, or for 90 days in the absence of a lease; and require that owners of foreclosed properties maintain their properties and keep them safe and habitable.
on Dec 3, 2009