Bill Text: NY A07338 | 2011-2012 | General Assembly | Introduced

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Bill Title: Relates to procedures at mandatory settlement conferences in residential foreclosure actions and requires good faith settlement discussions in connection with such foreclosure actions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-01-04 - referred to judiciary [A07338 Detail]

Download: New_York-2011-A07338-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         7338
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                    April 29, 2011
                                      ___________
       Introduced by M. of A. BARRON -- read once and referred to the Committee
         on Judiciary
       AN  ACT to amend the civil practice law and rules, in relation to manda-
         tory settlement conferences in  residential  foreclosure  actions  and
         requiring  good  faith  settlement discussions in connection with such
         foreclosure actions
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1. Subdivision (a) of rule 3408 of the civil practice law and
    2  rules, as added by chapter 507 of the laws of 2009, is amended  to  read
    3  as follows:
    4    (a)  In  any  residential  foreclosure action involving a home loan as
    5  such term is defined in section thirteen hundred four of the real  prop-
    6  erty  actions  and proceedings law, in which the defendant is a resident
    7  of the property subject to foreclosure, the court shall hold a mandatory
    8  conference within sixty days after the date when  proof  of  service  is
    9  filed  with  the  county  clerk,  or  on such adjourned date as has been
   10  agreed to  by  the  parties,  for  the  purpose  of  holding  settlement
   11  discussions  pertaining  to  the  relative rights and obligations of the
   12  parties under the mortgage loan documents, including, but not limited to
   13  determining whether the parties can reach a  mutually  agreeable  resol-
   14  ution to help the defendant avoid losing his or her home, and evaluating
   15  the potential for a resolution in which payment schedules or amounts may
   16  be  modified or other workout options may be agreed to, and for whatever
   17  other purposes the court deems appropriate.  BOTH THE PLAINTIFF AND  THE
   18  DEFENDANT  MUST  MAKE  GOOD  FAITH EFFORTS TO REACH A MUTUALLY AGREEABLE
   19  RESOLUTION. SUCH GOOD FAITH EFFORTS MUST INCLUDE, AT A MINIMUM,  FOLLOW-
   20  ING  THE  UNITED STATES DEPARTMENT OF TREASURY HOME AFFORDABLE MODIFICA-
   21  TION PROGRAM GUIDELINES ISSUED ON MARCH FOURTH, TWO THOUSAND  NINE,  AND
   22  ANY AMENDMENTS THERETO.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09652-01-1
       A. 7338                             2
    1    S 2. Subdivision (a) of rule 3408 of the civil practice law and rules,
    2  as  added  by  chapter  472  of  the laws of 2008, is amended to read as
    3  follows:
    4    (a)  In  any residential foreclosure action involving a high-cost home
    5  loan consummated between January first, two thousand three and September
    6  first, two thousand eight, or a subprime or nontraditional home loan, as
    7  those terms are defined under section thirteen hundred four of the  real
    8  property  actions and proceedings law, in which the defendant is a resi-
    9  dent of the property subject to foreclosure,  the  court  shall  hold  a
   10  mandatory  conference  within  sixty  days  after the date when proof of
   11  service is filed with the county clerk, or on such adjourned date as has
   12  been agreed to by the parties, for the  purpose  of  holding  settlement
   13  discussions  pertaining  to  the  relative rights and obligations of the
   14  parties under the mortgage loan documents, including, but not limited to
   15  determining whether the parties can reach a  mutually  agreeable  resol-
   16  ution to help the defendant avoid losing his or her home, and evaluating
   17  the potential for a resolution in which payment schedules or amounts may
   18  be  modified or other workout options may be agreed to, and for whatever
   19  other purposes the court deems appropriate.  BOTH THE PLAINTIFF AND  THE
   20  DEFENDANT  MUST  MAKE  GOOD  FAITH EFFORTS TO REACH A MUTUALLY AGREEABLE
   21  RESOLUTION. SUCH GOOD FAITH EFFORTS MUST INCLUDE, AT A MINIMUM,  FOLLOW-
   22  ING  THE  UNITED STATES DEPARTMENT OF TREASURY HOME AFFORDABLE MODIFICA-
   23  TION PROGRAM GUIDELINES ISSUED ON MARCH FOURTH, TWO THOUSAND  NINE,  AND
   24  ANY AMENDMENTS THERETO.
   25    S  3.  This act shall take effect immediately; provided, however, that
   26  the amendments to subdivision (a) of rule 3408 of the civil practice law
   27  and rules made by section one of this act shall be subject to the  expi-
   28  ration  and  reversion  of such subdivision pursuant to subdivision e of
   29  section 25 of chapter 507 of the laws of 2009,  as  amended,  when  upon
   30  such date the provisions of section two of this act shall take effect.