Wednesday, June 24, 2020

New Rules for Residential and Commercial Foreclosure Proceedings

Effective June 24, 2020, the following rules apply to residential and commercial foreclosure proceedings as per Administrative Judge Lawrence K. Marks memorandum dated June 23, 2020:

Like eviction proceedings, commencement documents must be filed only by NYSCEF or by mail and commencement papers for residential and commercial foreclosure proceedings are required to include:
  • A form plaintiff’s attorney affirmation, indicating that counsel has reviewed the various state and federal restrictions and qualifications on foreclosure proceedings and believes in good faith that the proceeding is consistent with those restrictions and qualifications; and
  • A form notice to defendants-tenants (in English and Spanish), informing them that they may be eligible for an extension of time to respond to the complaint in light of legal directives related to the COVID-10 pandemic, and directing them to a website link for further information.

In addition, regardless of whether an answer is filed, further hearing of the case shall be stayed until Executive Orders suspending deadlines for the prosecution of legal matters expire. However, the following may proceed:
  • Foreclosure matters wherein all parties are represented by counsel may be calendared for both initial and follow-up virtual settlement conferences;
  • Lenders may move for a judgment of foreclosure and sale on the ground that a property is vacant and abandoned; and
  • Lenders may also move to discontinue a pending case.

No motions shall be entertained or decided, except for motions to discontinue and motions for judgments of foreclosure for vacant and abandoned property only.

Stay tuned as Administrative Judge Lawrence K. Marks is expected to issue further directives on foreclosures at or before the Executive Orders suspending deadlines expire.


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