WBK Industry News - State Regulatory Developments

NY Amends Provisions Regarding Vacant and Abandoned Properties

New York recently amended provisions of its Real Property Actions and Proceedings Law regarding the maintenance of property subject to a mortgage foreclosure action. The law is effective immediately.

The amendment first clarifies the meaning of “vacant” and “abandoned,” including the steps a mortgagee-plaintiff must take to establish a mortgagor’s abandonment of residential property. Second, the revision establishes that a mortgagee-plaintiff may enter the property for the limited purposes of inspection, repair, and maintenance as required by law, provided that if the property is occupied by a tenant, the mortgagee-plaintiff must give seven days’ notice to the tenant (absent an emergency). Third, the amendment establishes a $500 penalty for mortgagee-plaintiffs who enter a residential property without a good faith basis for believing that the property is vacant or abandoned and who do not follow the steps a mortgagee-plaintiff must take to establish a mortgagor’s abandonment of residential property.