Homeowners facing foreclosures in Suffolk County and throughout New York will soon get a little relief, since the governor has agreed to sign a newly passed bill into law. The bill is designed to eliminate loopholes that allow foreclosure cases to stall in the court system.
The Way It Was
The foreclosure process is initiated when a lender files a complaint against a homeowner for not paying his mortgage. After filing the complaint, the lender then files a Request for Judicial Intervention (RJI), which officially starts the judicial process. Once this request is received, the courts schedule foreclosure settlement conferences between the homeowner and the lender, provide housing counseling, and offer free legal advice.
The Way It Developed
In the past, there have been difficulties with lenders starting foreclosure proceedings even though they are not legally the owners of the loan. To deal with this problem, in 2010, a law was passed that required lenders to file an affirmation that certified the legitimacy of their lawsuit. They were to file the affirmation at the same time as the RJI. Unfortunately, instead of simply filing both sets of paperwork at the beginning of the foreclosure proceeding, many lenders began to delay the filing of the RJI to allow more time to prepare the affirmation. As a result, homeowners were caught in what is termed the “shadow docket.” Foreclosure proceedings have been initiated against them, but they do not yet have access to the mediation and services offered by the court system. As they wait, interest and fees continue to climb, increasing the amount they owe to their mortgage company. Unfortunately, homeowners that fall into this “shadow docket” typically lose their homes completely.
The Way It Will Become
As more foreclosures in Suffolk County and other parts of the state got stuck in the “shadow docket,” lawmakers began to look for a way to address the problem. Their solution was a bill that requires mortgage lenders to submit the affirmation when they initiate their foreclosure lawsuit. This plan will eliminate the reason for the delay in filing the RJI and will give homeowners immediate access to the resources available to them through the court system. The bill was approved by the state legislature in June and then signed into law by the governor on July 31st. The law will go into effect 30 days from that date.
If you are one of the homeowners battling foreclosures in Suffolk County or in Nassau County, Witkon Law can help to protect you against unscrupulous lenders. An foreclosure lawyer can ensure that the law is followed to the letter and that you receive the protection you deserve. Contact the Witkon Law office today for a free consultation.