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New York Legislation May Expedite Foreclosure Proceedings

Foreclosure-Four-BH-300x198The New York Department of Financial Services has published a Consumer Bill of Rights to assist New York homeowners facing foreclosure, according to an announcement from New York Governor Andrew M. Cuomo. The announcement also states that a regulation regarding community blight has also be finalized.

“These reforms help ensure New Yorkers at risk of foreclosure know their rights, that banks and mortgage servicers are held to their obligations, and that neighborhoods across the state are protected from the blight of zombie properties, which threaten property values, as well as public safety,” Governor Cuomo said. “These steps will help protect the quality of life in our communities and preserve the American Dream in New York.”

Both actions include measures such as expediting foreclosure proceedings and updating the efficiency and integrity of the mandatory settlement conferences.

The announcement reports that the Department of Financial Services is required to publish a Consumer Bill of Rights no later than 60 days after the new law takes effect, and with that, the court overseeing a foreclosure proceeding after the law takes effect is required to provide homeowners with a copy of the Consumer Bill of Rights at the initial mandatory settlement conference.

“DFS is proud to put this vital legislation, signed by Governor Cuomo, into action with this final regulation and new Consumer Bill of Rights,” says Superintendent of Financial Services Maria T. Vullo. “Homeowners will now be armed with the information they need to better navigate the foreclosure process and entire communities will be provided assistance and protection with this final regulation in place.”

Additionally, the announcement states that after the new law takes effect, bank and mortgage servicers must complete an inspection of a property subject to delinquency within 90 days as wells as secure and maintain the property if the bank or servicer has a reasonable basis to believe that the property is vacant and abandoned.

“Banks and mortgage servicers are required to report all such vacant and abandoned properties to DFS and submit quarterly reports detailing their efforts to secure and maintain the properties and the status of any foreclosure proceedings,” says the announcement. “The law also requires the creation of a zombie properties hotline to allow New Yorkers to report vacant or abandoned properties.”

To view the full Consumer Bill of Rights, click HERE.

About Author: Kendall Baer

Kendall Baer is a Baylor University graduate with a degree in news editorial journalism and a minor in marketing. She is fluent in both English and Italian, and studied abroad in Florence, Italy. Apart from her work as a journalist, she has also managed professional associations such as Association of Corporate Counsel, Commercial Real Estate Women, American Immigration Lawyers Association, and Project Management Institute for Association Management Consultants in Houston, Texas. Born and raised in Texas, Baer now works as the online editor for DS News.
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