LIEB BLOG

Legal Analysts

Showing posts with label lien. Show all posts
Showing posts with label lien. Show all posts

Wednesday, June 30, 2021

New Foreclosure Compliance Rules in Town of Southampton

The Town of Southampton has issued a new compliance protocol (Town Code at Chapter 262) for Foreclosure Plaintiffs in response to an increase in crime and deterioration in property appearance. 

The new law sets forth a Registration Scheme with new maintenance obligations:

  • Homes are to kept free and clear of weeds, overgrown brush, trash, dead vegetation, debris, etc.
  • No graffiti
  • Requirements for watering, irrigation, cutting and mowing of lawn
  • Pools and spas to be clear of pollutants and debris
Properties subject to foreclosure must be properly secured in order to avoid unauthorized access:

  • Locked windows, doors, and gates
  • Repairs to broken windows, doors, and gates
  • Designation of a property manager to maintain and perform necessary work

Penalties & Fines include:

  • $1,000 fine or up to 15 days in jail (or both), for each violation
  • $1,000-$5,000 fine or up to 15 days in jail (or both) for a second or subsequent violation
  • $150 for first day of violation, $250 for second day of violation, $500 for third day of violation and continuing.
Will the new registration requirements really increase the value of neighborhoods and decrease crime and deterioration? 






Thursday, August 06, 2020

Mortgage Lender Warning - No Consideration Deed

The Appellate Division recently reminded us of the importance of investigating a no consideration deed prior to issuing a mortgage to the titleholder. 

In 2386 Hempstead, Inc. v. 182 St., Inc., the Appellate Division held that the no consideration deed constituted notice of a potential previous fraud in the title spurring a duty to make inquiry concerning the circumstances of the transaction at issue. 

By failing to make such inquiry, the lender lost its status as a bona fide encumbrancer for value and therefore, jeopardized its status as a prior lienholder, who gets paid first in a foreclosure action.