New York State Assemblyman Fred W. Thiele, Jr. (I, D, WF-Sag Harbor) announced the Assembly passed legislation he supported to address the growing number of residential properties abandoned due to foreclosure and minimize the negative effects these vacant homes can have on their communities.

“Too many families have lost or are losing their homes to foreclosure, and as a result, our neighborhoods are being blighted by decaying – and often dangerous – properties,” said Assemblyman Thiele. “The legislation I helped pass will not only ensure more homeowners have a fair shot at keeping their homes, but that when foreclosures happen, the abandoned properties are maintained by the banks that own them – without burdening local taxpayers.”

Holding lenders accountable

Under current law, lenders are required to maintain vacant residential properties only after a “Judgment of Foreclosure and Sale” has been entered by the court. In many cases, however, the foreclosure effort is abandoned, leaving the property completely uncared for. These “zombie” homes can negatively impact surrounding property values, become costly for local governments to secure at taxpayer expense and are more vulnerable to an increase in crime, Thiele noted.

The New York State Abandoned Property Relief Act of 2016 (A.6932-A) would address these issues by requiring earlier detection and maintenance of vacant and abandoned residential properties, as well as:

• expanding the existing duty of a mortgagee to maintain vacant residential real property to include pre-foreclosure vacant properties;
• requiring periodic inspections to determine whether properties secured by a delinquent mortgage have actually been abandoned;
• allowing localities and the attorney general to enforce the maintenance of property requirements; and
• creating a statewide registry for abandoned residential property and a toll-free hotline for residents to report such properties.

“It’s time for lenders to take responsibility for their foreclosed and abandoned properties,” said Assemblyman Thiele. “Nobody should have to live in a neighborhood where houses have been left to rot – especially when the financial institutions that own them have the means to maintain them.”

Protecting homeowners’ rights

Evidence has also shown that many New Yorkers facing foreclosure mistakenly believe they need to vacate their homes earlier than expected, and too often, lenders engage in predatory and deceptive business practices in an effort to force borrowers from their homes.

To combat these growing problems and protect the rights of homeowners, additional legislation would allow homeowners to challenge the legality of a foreclosure proceeding at any point during the foreclosure process and would clarify the law regarding mandatory settlement conferences, which are often critical in negotiating better outcomes in order to preserve homeownership (A.247, A.1298).

“Putting the needs of families first includes doing all we can to help homeowners avoid foreclosure,” said Thiele. “Strengthening homeowner rights in foreclosure proceedings and cracking down on unscrupulous lending practices will help keep more hardworking families in their homes and prevent the deterioration of our neighborhoods.”