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Showing posts with label Lenders Are Now Required to Maintain Vacated Residential Property at Start of Foreclosure. Show all posts
Showing posts with label Lenders Are Now Required to Maintain Vacated Residential Property at Start of Foreclosure. Show all posts

Wednesday, December 22, 2021

It's Official! Lenders Must Maintain Vacated Residential Property at the Start of a Foreclosure Action

As you may recall, a proposed bill (S1579A) was submitted to Gov. Hochul earlier this month seeking to amend the RPAPL and require lenders, assignees, or mortgage loan servicers to maintain and upkeep vacant residential property at the beginning of a foreclosure action, rather than towards the end of it. 


On December 21, 2021, Gov. Hochul signed the bill into law and it became effective immediately. 


Lenders are likely not thrilled about this new legislation considering they now face the burdensome task of maintaining and upkeeping vacated residential homes throughout the entire foreclosure process, which as we all know, could last months or even years. 


Lenders could also face the risk of being accused of trespass for gaining access to what is a supposed to be a vacant residential home that is being foreclosed upon. It is certainly not uncommon for homeowners to continue residing at a foreclosed home especially at the commencement of a foreclosure action.  


What kind of ripple effect will this new legislation have on residential foreclosure actions going forward?


Stay tuned over the coming months to find out....