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NEW YORK
Lawmakers Spar Over Abandoned Property Legislation
Republican lawmakers are questioning the impact of a recent
bill related to zombie properties that was passed by the New York
State Senate and Assembly. Specifically, they want to know more
about its effect on the state's current foreclosure process.
e Post-Journal reported the bill, which was sponsored by
Assemblyman William Magnarelli, (D-Syracuse), stipulates that
if a property has been deemed vacant, a municipality can begin a
legal proceeding to compel banks to begin foreclosure within three
months and meet all deadlines to make sure the case is resolved
within a year.
Additionally, it said that if a foreclosure case on the abandoned
property has begun, the bank must file the necessary motions and
within three months file paperwork to move the case to judicial
foreclosure or issue a certificate of discharge within three months
and file a satisfaction of the mortgage with the appropriate local
offices.
Republicans also raised issues related to the Community Rein-
vestment Act and the state's Mortgage Foreclosure Prevention Act
that would be impacted by the passage of this bill, according to
e Post-Journal. e report quoted Assemblyman Andrew Raia,
(R-Northport) asking if banks would be able to meet the timelines
laid out for them in the Zombie Property Remediation Act while
living up to the Mortgage Foreclosure Prevention Act, especially
given that New York has the longest foreclosure process in the
country.
Assemblyman Andrew Goodell, (R-Jamestown) also ques-
tioned the ability of the municipality to bring an action before the
bank has even begun the foreclosure process "or if the property is
abandoned but not in default because the mortgage is still being
paid." He also said it is "time for the state legislature to rewrite the
state's foreclosure laws so that the system works for someone other
than real estate attorneys."
e New York State Senate and Assembly recently passed
legislation aimed at solving the state's zombie homes problem.
According to e Post-Journal, the bill titled "Zombie Property
Remediation Act of 2019" was approved 122-24 on the floor of the
state Assembly and 48-14 by the state Senate and is awaiting Gov.
Andrew Cuomo's approval before it becomes a law.