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New York Government Mortgage Foreclosure protection Help
Now in New York, prime borrowers will get New York Government foreclosure help through a new bill that just passed in the State Legislature. Similar to the 2007 legislation that helped subprime mortgage borrowers, prime mortgage borrowers will also have protection against foreclosure. The law should be effective within 2 months after Gov. David A. Paterson signs it.
90 Day Notice
Borrower’s will receive a 90 notice before the foreclosure proceedings begin. They also are to be included in the settlement conference negotiations before the bank decides to take a foreclosure action. Out of the 20 measures, being able to mediate with the banks, would finally let borrowers get a chance to ask for a loan modification. This offers tremendous help, since many borrowers have reported that their bank has not been willing to discuss any change in their loan.
Bill Passed Quickly
There are definite signs that the New York Government foreclosure help bill will get passed quickly. According to the New York State Banking Department superintendent, Richard H. Neiman, that compared to the recent stalled legislation, he was pleasantly surprised by how fast the bill passed.
Homeowners pay nothing for the mediation. At a particular place and date, lenders are required to have a representative that brings financial documents and all the information required by the mediators.
Mediation administrators have said that these have had poor results for subprime borrowers because the borrowers don’t attend. Now, with the lender required to bring all requested financial documents, borrowers have more incentive to come.
Borrowers Get Housing Counseling
In addition, when banks tell the state their will soon act on foreclosures, the new legislation forces the state to give the borrower’s name to housing counseling organizations. Then, these organizations provide information for the borrower on how to avoid foreclosure, like mediation.
Protection For Multifamily Housing Tenants
This legislation provides co-op residents 90 days prior to losing their ownership shares. Since co-op units are not legally defined as real property, they do not meet the qualifications for typical foreclosure procedures. Tenants are responsible for monthly maintenance payments that cover the building’s expenses and its mortgage.
This new law has shined a light on the trials that tenants endure when they cannot meet the monthly maintenance payments. Often, their owners have been told to leave their residence within 2 months right after the building’s board decides to take official action against a resident that has not paid. After this law takes affect, tenants will have more time to get help and be protected against harassment.
Large Part Of New York Housing
Moreover, the new protection for the tenants is especially significant, since the housing market in New York includes a large amount of multifamily units, according to Jane Azia, director for the State Banking Department. Jane Azia added, that it also helps multifamily units already undergoing foreclosure. Even though foreclosure takes almost 15 months in the state of New York, only after the foreclosure judgment, can lenders evict the tenants.
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