The State of New York is taking the next step in its fight against abandoned foreclosures by introducing a consumer bill of rights for borrowers facing foreclosure. The state announced new laws earlier this year designed to reform the foreclosure process and address its issues with abandoned foreclosures, also referred to as zombie homes.
These new laws will help expedite rehabilitation, repair and improvement of these abandoned properties and further assists homeowners facing foreclosure. Currently, New York has one of the longest foreclosure timelines in the nation, averaging 1,070 days to foreclose.
In addition, the new laws impose a pre-foreclosure duty on banks and servicers to maintain zombie homes, create an electronic registry of abandoned properties, and expedite foreclosure for vacant and abandoned properties to get those houses back on the market.
The consumer bill of rights, reminds consumers of the various rights they have before, during, and after the foreclosure process.
- The bill of rights tells consumers that they can and should seek the assistance of a lawyer or a housing counselor if they are facing foreclosure.
- The bill of rights tells borrowers that they have the right to stay in their home during the foreclosure process, unless or until a court orders them to vacate.
- “If you abandon your home, the plaintiff (bank or mortgage servicer) may be able to foreclose on your property through an expedited process in court,” the bill of rights continues.
- To prevent this outcome, stay in your home and carefully review and respond to documents you receive from the plaintiff or the court in your foreclosure case.
- A failure to respond or appear in court when required to do so could make it easier for the servicer to show that your property is vacant and abandoned, which could put you at risk of an expedited foreclosure.
The bill of rights also walks borrowers through the various steps of the foreclosure process and their rights throughout, including their legal options and their right to seek “loss mitigation” options.
These new reforms help ensure borrowers facing foreclosure know their rights, that banks and service providers are held to their obligations and that neighborhoods are protected from zombie foreclosures as these are known to threaten property values and neighborhood safety.
Click here to read more on this story.
Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com
