While there has been a lot of attention on New York’s eviction moratorium- another housing related matter has received significantly less- until the special legislative session that was called on Wednesday by Governor Kathy Hochul.
Lawmakers are worried about evictions, but even more concerned about foreclosures, which would send a pandemic-fueled housing crisis into full spin.
While the foreclosure process itself is time consuming and complex- a Court of Appeals ruling this year allows lending banks to reset a statute of limitations when determining voluntary discontinuance.
The bill is backed by Sen. James Sanders and Assemblywoman Latrice Walker, and it would block banks from resetting the statue of limitations period with a voluntary discontinuance.
“Given the state of the economy during the COVID-19 pandemic, and even before that, Southeast Queens has been hit with a barrage of home foreclosures,” Sanders said. “The New York State Court of Appeals ruling earlier this year has even made matters worse by giving mortgage lenders an undue advantage over homeowners in court proceedings. My legislation would ensure a fair process during foreclosure cases and prevent many foreclosures.”
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