WBK Industry News - State Regulatory Developments

NY Amendment Extends Mortgagee Responsibility for Property Maintenance in Foreclosure Actions

Recently, the Governor of New York signed an amendment to the state’s foreclosure law involving residential real property which extends a foreclosing party’s responsibility to maintain a property that is abandoned or occupied by a renter.  Under this amendment plaintiffs, including lenders, assignees, and mortgage loan servicers, must maintain the property, in accordance with existing law, upon commencement of the foreclosure action.  Previously, such maintenance was not required until a foreclosure judgement had been issued.  This amendment seeks to prevent neighborhood blight resulting from foreclosing parties failing to follow through or delaying taking control of a property after commencing a foreclosure action. 

This amendment took effect December 21, 2021.