Throughout the past many years, the New York legislature passed new laws that are supposed to produce additional protections to householders who are facing the specter of mortgage foreclosure. These legislative changes are supposed to protect homeowners of residential properties by requiring that additional notices be sent to owners both before and throughout the foreclosure process. The underlying goal is to decrease the number of properties lost through foreclosure by guaranteeing the householders are responsive to their rights to file answers in response to foreclosure complaints. The notice necessities have been strictly interpreted by the courts, and have resulted within the dismissal of foreclosure actions that were filed by lenders who didn't go with the specific dictates of the new laws.
In 2008, the New York Legislature amended the Real Property Action and Proceedings Law (known as the "RPAPL") to want that a 90-day notice be sent to residential borrowers for top-value, subprime or non-traditional loans. Below the 2008 modification, ninety-days notice may be a perquisite to the filing of a mortgage foreclosure proceeding, and it applies to subprime loans that were consummated between January 1, 2003 and September one, 2008. The foregoing time-period is clearly meant to hide the amount throughout which it's believed that the most abusive lending practices occurred. The statute defines non-traditional loans as those that are interest-only and/or have variable rates. Below the statute, "subprime loans" are those with interest rates higher than a sure threshold, which is determined based mostly on a formula that is set forth within the statute.
Most recently, in November, 2009, the New York legislature voted to increase the ninety-day notice demand to all sorts of home loans - not just subprime mortgages. The bill additionally provides protections to renters living in foreclosed properties, allowing them to stay in their homes for the complete 90-day notice amount or the length of their leases, whichever is longer. The legislature also enacted new necessities referring to summonses that are served in foreclosure cases. RPAPL ? 1320 is labeled "Special summons requirement and personal residential cases." This section needs that a specific notice be included within the summons in residential foreclosure cases of three units or less. The notice consists of a warning to the borrower that a default in answering may result in the loss of the borrower's home. The precise text that has to be included in the summons is ready forth within the statute.
When filing a solution to a mortgage foreclosure grievance, a homeowner ought to assert, as an affirmative defense, that the lender didn't accommodates the special summons requirement applicable to foreclosure cases. The filing of an answer type in response to a foreclosure complaint can ensure that the dismissal of a lender's summons and grievance that fails to incorporate the new, obligatory warnings. In the choice, a house owner might assert their rights underneath the new law by filing a motion to dismiss the foreclosure action.
While it may seem obvious that a foreclosure action will end in the loss of the topic property, the truth is that historically, many homeowners don't file answers to foreclosure complaints. With the new laws, the legislature and courts obtain to emphasise the need for householders to take quick action by filing and serving an answer to the foreclosure complaint. The hope is to administer householders, significantly people who are burdened with subprime loans, a chance to stop foreclosure and reach an alternative solution not involving the loss of their properties.
The foregoing RPAPL amendments are just a few of the numerous statutory provisions that have been enacted to guard residential property homeowners in New York from the loss of their homes in foreclosure. Additionally to the new foreclosure defense legislation, the courts in New York have become increasingly vigorous in making certain that householders actually receive the desired notifications. Judges haven't hesitated to dismiss foreclosure cases that were filed in violation of the new laws. The key is for a house owner to really answer a foreclosure summons and grievance, thereby ensuring that the lender's criticism is subject to the judicial scrutiny. In this way, householders have the chance to stop foreclosure.
As a results of the modified laws and procedures, homeowners are more probably to achieve their efforts to defend against the loss of their homes through foreclosure. Though the foreclosure crisis in New York isn't as severe as in some states (e.g. Nevada and Florida), the statistics offer ample cause for concern. As of November, 2009, it is estimated that twelve% of New York householders are delinquent in their mortgage payments. Meanwhile, New York suffers from a nine% unemployment rate, giving reason to believe that the rate of foreclosures can still be high. Thus, the defensive measures enacted in New York represent an endeavor to accommodate an ongoing crisis that shows no sign of abating in the near future, and which will continue to have an effect on people and neighborhoods throughout the state.
Author Resource:
Riley Jones has been writing articles online for nearly 2 years now. Not only does this author specialize in Foreclosures, you can also check out his latest website about:
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