In June 2016, Governor Cuomo signed into the law this bill which is poised to impact foreclosure litigation processes. Effective December 20, 2016 the Omnibus Bill will mainly address methodologies associated with vacant properties, informally referred to as “Zombie” properties.
Notably, some important aspects of the bill include amendments to sections 1303 and 1304 of New York’s RPAPL. These sections will now include additional disclosure requisites while also requiring further duties on foreclosing plaintiffs. For example, the required 90 day notice sent to defaulting parties must now include language that articulates that the commencement of legal proceedings will be permitted only “if you have not taken any actions to resolve this matter within 90 days.” Additionally, a new mandatory foreign language provision must also be included in the mentioned 90 day notice.
The Omnibus bill also added to RPAPL an entirely new section 1308 which provides a stringent framework for the duties of maintenance first mortgage lienholders must perform with respect to “Zombie” properties. In addition to RPAPL changes, S8159 also adds a new Rule 3408 to the NYCPLR which requires mortgagees and the borrower to participate in mandatory settlement conferences when engaged in a foreclosure action of residential real property.
This summary only includes a few key highlights of the bill and is not intended as legal advice. For supplemental analysis of the Omnibus bill, or further inquiries concerning legal consequences of the new law please contact our attorneys at Sandelands Eyet LLP.