New York State Amends Foreclosure Laws: What To Know

Foreclosure Real Estate Law Case in NYC

New York has made significant amendments to its foreclosure laws, which are crucial for homeowners facing the daunting prospect of foreclosure. A critical aspect of these changes is the requirement for the lender to assert its ownership of the loan when initiating the foreclosure process. This development is aimed at ensuring transparency and protecting the rights of homeowners.

In light of these legal changes, homeowners have been granted the opportunity to raise specific defenses to safeguard their homes. These defenses revolve around the lender’s “standing” to proceed with the foreclosure case. In essence, the lender, usually a financial institution or loan service, must explicitly state in the foreclosure complaint that it is the rightful owner and holder of the mortgage and promissory note, or it must have the delegated authority to initiate the foreclosure. This requirement applies to residential mortgages covering one- to four-family dwellings.

The concept of “standing” is of paramount importance in foreclosure law cases. It pertains to the legal right of the party initiating the foreclosure to do so, based on their ownership or delegated authority. Robert Aronov, a renowned foreclosure defense lawyer in New York, is well-versed in these matters and can provide invaluable assistance to homeowners navigating these legal intricacies.

Furthermore, New York’s amended foreclosure law places additional obligations on the plaintiff (the party initiating the lawsuit). It necessitates compliance with various provisions of the state’s existing foreclosure laws. One such requirement is sending a preforeclosure notice to the borrower, especially if the property in question is an owner-occupied one- to four-family dwelling or a condominium unit.

This preforeclosure notice serves as a vital step in the foreclosure process, providing borrowers with information on how to cure the default and a list of government-approved housing counseling agencies in their vicinity. Failing to send this notice as required by law or not strictly adhering to notice requirements can offer homeowners a potent defense, potentially leading to the dismissal of the foreclosure action.

In summary, the recent amendments to New York’s foreclosure laws, including the requirement for lenders to establish their “standing” and the need to comply with preforeclosure notice requirements, have a substantial impact on foreclosure cases in the state. Homeowners seeking to protect their homes should consider consulting with experienced professionals like Robert Aronov, a foreclosure defense lawyer, who can provide them with expert guidance and legal support.

Robert Aronov & Associates, PC 88-02 136th St, Jamaica, NY 11418 (718) 206-1555

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