The State of New York has unveiled a consumer bill of rights for homeowner that are in any stage of the foreclosure process. The statement which can be read in full here, informs the homeowners as a consumer that they have rights during the process and advises them that they have a right to seek legal counsel if they are facing a foreclosure in New York. The bill of rights also tells borrowers that they have the right to stay in their home during the foreclosure process. Many people have been under the impression that they must leave their houses once they are not able to pay their mortgage. The language of the bill states..“If you abandon your home, the plaintiff (bank or mortgage servicer) may be able to foreclose on your property through an expedited process in court. To prevent this outcome, stay in your home and carefully review and respond to documents you receive from the plaintiff or the court in your foreclosure case. A failure to respond or appear in court when required to do so could make it easier for the plaintiff to show that your property is vacant and abandoned, which could put you at risk of an expedited foreclosure.” The Bill of Rights thereafter goes through the steps and legal process that must take place before the home is foreclosed upon.
The consumer bill of rights is part of legislation originally introduced by New York Attorney General Eric Schneiderman in 2014 and 2015. The purpose of the laws were to reduce the number of zombie homes by informing homeowners of their right to stay in their home until a court orders them to leave. Furthermore, the legislation is intended to combat the blight of vacant and abandoned properties by expediting the rehabilitation, repair and improvement of these properties.
Additionally, the new laws will also impose a duty on banks and servicers to maintain zombie homes in the pre-foreclosure timeframe and they would be required to create an electronic registry of abandoned properties The banks and servicers would also have to expedite foreclosure for vacant and abandoned properties to get them back on the market. The legislature would require the foreclosing party takes action to ensure new parties enter the property within 180 days.
The foreclosure time from the first missed payment to the exiting of the property in New York State is 1,070 days. New York has the second highest amount of abandoned foreclosures with 3,352 according to RealtyTrac. The new legislation hopes to address these issues head on.
Blue Harbour Property Management has managed many New York City properties where the homeowners has purchased directly from the bank. If you are looking for property management in NYC of your previous bank owned property contact Blue Harbour Property Management. We can give you a comprehensive service package that will assist you to maximize your rental revenues.