The state Legislature has passed a bill that will give New York state homeowners and renters more protection during foreclosures.
It will expand the mandatory 90-day pre-foreclosure notice to all types of home loans – not just subprime mortgages – so all homeowners are given information and time to take action.
Gov. David Paterson introduced the bill. It will allow the Banking Department and the Division of Housing and Community Renewal to find and help homeowners facing foreclosure.
It also creates new protections for renters living in foreclosed properties, allowing them to remain for the remainder of their lease or 90 days – whichever is longer.
The bill also protects homeowners by barring brokers who perform distressed property consulting services from accepting upfront fees.