THE GOVERNOR NEEDS TO SIGN THE
the Mortgage Foreclosure bill, sponsored by State Senator Jeff
passed both houses in Albany. Foreclosures have ravaged
many neighborhoods in New York State. Not only have property
decreased, but the security and beauty of our communities have
felt the negative effects.
The bill makes
homeowner and tenant protection top priorities, requiring
of foreclosed properties by lending institutions, tenant
notification before a home goes into foreclosure, and seeks to
the American dream of home ownership from predatory and
fraudulent rescue scam artists.
Lending institutions would be
required to maintain the property so that it remains in a safe
and habitable condition, thereby protecting neighboring
and preventing health hazards, vandalism, squatting, fires, and
graffiti that plague abandoned and unkept foreclosed homes.
protect the tenant, the lending institution that acquires the
foreclosed property must notify the tenant at least 90 days before
taking legal action, a welcome safety net. Previously, tenants
evicted by marshals with just 48 hours notice.
Foreclosure bill also improves the efficiency of the existing
court-based settlement conference process to include all
all types of loans, including the debilitating sub-prime loans, to
negotiate loan modifications so that families can stay in their
requires mortgage loan distributors to regularly
with the Superintendent of Banks that pertains to tenants or
who were given a 90-day foreclosure notice. This provision will
prevent foreclosures because it identifies distressed homeowners
soon as possible so that they can receive effective counseling.
legislation enacted some safeguards for distressed homeowners,
as prohibiting distressed property consultants from accepting
upfront fees, but it exempted mortgage bankers and brokers
by the Banking Department.
This bill prohibits all consultants
from accepting upfront fees and it mandates that mortgage brokers
disclose the exact amount of total compensation and why the broker
receive that amount in the transaction. Governor Paterson must
this bill into law now.