Bill Text: NY A01310 | 2011-2012 | General Assembly | Introduced

---

Bill Title: Provides for free legal representation in certain mortgage foreclosure actions where the homeowner is financially unable to obtain counsel; requires notice of such availability.

Sponsorship: Strong Partisan Bill (Democrat 16-1)

Status: (Introduced - Dead) 2012-01-04 - referred to housing [A01310 Detail]

Download: New_York-2011-A01310-Introduced.html

---

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1310
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 5, 2011
                                      ___________
       Introduced by M. of A. JEFFRIES -- read once and referred to the Commit-
         tee on Housing
       AN  ACT  to  amend the real property actions and proceedings law and the
         county law, in  relation  to  representation  of  certain  persons  in
         private residential foreclosure actions
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The real property actions and proceedings law is amended by
    2  adding a new section 1308 to read as follows:
    3    S 1308. ASSIGNMENT OF COUNSEL. A HOMEOWNER IN A FORECLOSURE ACTION WHO
    4  IS FINANCIALLY UNABLE TO  OBTAIN  COUNSEL  FOR  REPRESENTATION  IN  SUCH
    5  ACTION  SHALL HAVE A RIGHT TO ASSIGNED COUNSEL BY THE COURT.  ASSIGNMENT
    6  OF COUNSEL ISSUED UNDER THIS SECTION SHALL BE IMPLEMENTED AS PROVIDED IN
    7  ARTICLE EIGHTEEN-B OF THE COUNTY LAW.
    8    S 2. Subdivision 3 of section 1303 of the real  property  actions  and
    9  proceedings  law,  as  amended  by  chapter  507 of the laws of 2009, is
   10  amended to read as follows:
   11    3. The notice to any mortgagor required by paragraph (a)  of  subdivi-
   12  sion one of this section shall appear as follows:
   13                     Help for Homeowners in Foreclosure
   14    New  York  State  Law  requires that we send you this notice about the
   15  foreclosure process. Please read it carefully.
   16  Summons and Complaint
   17    You are in danger of losing your home. If you fail to respond  to  the
   18  summons  and  complaint  in  this  foreclosure action, you may lose your
   19  home. Please read the summons and complaint carefully. You should  imme-
   20  diately  contact  an  attorney  or your local legal aid office to obtain
   21  advice on how to protect yourself.
   22  Sources of Information and Assistance
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD04676-01-1
       A. 1310                             2
    1    The State encourages you to become  informed  about  your  options  in
    2  foreclosure. In addition to seeking assistance from an attorney or legal
    3  aid  office,  there are government agencies and non-profit organizations
    4  that you may contact for information about possible  options,  including
    5  trying  to  work with your lender during this process.  YOU MAY BE ENTI-
    6  TLED TO ASSIGNED COUNSEL IF YOU ARE FINANCIALLY UNABLE TO OBTAIN  REPRE-
    7  SENTATION.
    8    To  locate  an  entity  near  you, you may call the toll-free helpline
    9  maintained by the New York State Banking Department at (enter number) or
   10  visit the Department's website at (enter web address).
   11  Foreclosure rescue scams
   12    Be careful of people who approach you with offers to "save" your home.
   13  There are individuals who watch for notices of  foreclosure  actions  in
   14  order  to  unfairly  profit  from  a homeowner's distress. You should be
   15  extremely careful about any such promises and any suggestions  that  you
   16  pay  them a fee or sign over your deed. State law requires anyone offer-
   17  ing such services for profit  to  enter  into  a  contract  which  fully
   18  describes  the services they will perform and fees they will charge, and
   19  which prohibits them from taking any money  from  you  until  they  have
   20  completed all such promised services.
   21    S 3. The article heading of article 18-B of the county law, as amended
   22  by chapter 682 of the laws of 1977, is amended to read as follows:
   23       REPRESENTATION OF PERSONS ACCUSED OF CRIME OR PARTIES BEFORE THE
   24         FAMILY COURT OR SURROGATE'S COURT OR IN CERTAIN FORECLOSURE
   25                                   ACTIONS
   26    S  4.  The  opening  paragraph  of  section  722 of the county law, as
   27  amended by chapter 7 of the laws of 2007, is amended to read as follows:
   28    The governing body of each county and the governing body of  the  city
   29  in  which a county is wholly contained shall place in operation through-
   30  out the county a plan for providing counsel to persons  charged  with  a
   31  crime  or  who  are  entitled to counsel pursuant to section two hundred
   32  sixty-two or section eleven hundred twenty  of  the  family  court  act,
   33  article  six-C  of the correction law, section four hundred seven of the
   34  surrogate's court procedure act [or], article ten of the mental  hygiene
   35  law  OR  SECTION THIRTEEN HUNDRED EIGHT OF THE REAL PROPERTY ACTIONS AND
   36  PROCEEDINGS LAW, who are financially unable to obtain counsel. Each plan
   37  shall also provide for investigative, expert and other  services  neces-
   38  sary  for  an  adequate  defense.  The  plan shall conform to one of the
   39  following:
   40    S 5. This act shall take effect on the first of January next  succeed-
   41  ing the date on which it shall have become a law.