Assemblyman Fred W. Thiele Jr. (I, D, WF-Sag Harbor) announced legislation he passed to hold lenders accountable for maintaining vacant “zombie” residences and better protect homeowners’ rights has been signed into law (A.10741).

“These zombie properties can have a devastating impact on our communities as they fall into disrepair, attracting crime and lowering property values,” Assemblyman Thiele said. “That’s why I helped pass a law encouraging banks to do their part in protecting our neighborhoods, because every one of us deserves to have a sense of pride in our homes and our community.”

The new law will force banks to be responsible for maintaining abandoned homes, even when a foreclosure action is pending, which will help reduce the number of dangerous and dilapidated properties. It also requires the banks to conduct periodic inspections to determine where vacant properties exist, and creates a statewide registry of and toll-free hotline for the reporting of zombie homes. Additionally, the state Department of Financial Services, as well as local governments, will have the power to enforce the law to make sure lenders are maintaining these properties. If lenders fail to do so, they can be fined up to $500 per property per day.

Under the law, courts will provide homeowners in foreclosure with a consumer bill of rights, ensuring homeowners are aware of their right to continue living in their homes until the foreclosure is finalized. The law also strengthens homeowners’ protections during court proceedings and imposes financial sanctions against lenders that do not make good faith efforts to resolve mortgage foreclosure actions.

“Together, these safeguards will help stabilize our communities, prevent zombie homes from lowering neighboring property values and provide key protections for homeowners facing foreclosure,” Thiele said.