State Senator Caesar Trunzo (R-Brentwood) announced today that his bill (S.8143-A) has been signed into law by the Governor. This bill attempts to address the mortgage foreclosure crisis in two ways. First, this bill provides assistance to homeowners currently at risk of losing their homes by providing additional protections and foreclosure prevention opportunities for such homeowners. Second, this bill establishes further protections in the law to mitigate the possibility of similar crises in the future. In particular, this bill would require lenders and mortgage loan service providers to provide a pre-foreclosure notice to borrowers with subprime loans at least 90 days before a legal action may be commenced against the borrower. The notice would advise the borrower of HUD-approved and DHCR designated housing counseling services available in the borrower's area. The additional period of time in many cases would allow borrowers to work on a resolution without fear of imminent loss of their homes. “New York State faces a mortgage crisis of immense magnitude,” said Senator Trunzo. “Many families have lost their homes and entire neighborhoods have been devastated. This crisis, especially in light of inaction by the federal government, make clear the need for state action on this issue.”
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