Bill Text: NY S07032 | 2013-2014 | General Assembly | Introduced

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Bill Title: Relates to prohibiting mortgagors from recovering attorney's fees and/or expenses incurred during a foreclosure.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-04-21 - REFERRED TO JUDICIARY [S07032 Detail]

Download: New_York-2013-S07032-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         7032
                                   I N  S E N A T E
                                    April 21, 2014
                                      ___________
       Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
         printed to be committed to the Committee on Judiciary
       AN ACT to amend the real property law, in relation to prohibiting  mort-
         gagors from recovering attorney's fees and/or expenses incurred during
         a foreclosure
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 282 of the real property law, as added  by  chapter
    2  550 of the laws of 2010, is amended to read as follows:
    3    S  282.  [Mortgagor's  right  to  recover]  MORTGAGORS PROHIBITED FROM
    4  RECOVERING attorneys' fees in actions  or  proceedings  arising  out  of
    5  foreclosures of residential property. 1.  [Whenever a covenant contained
    6  in  a  mortgage  on  residential real property shall provide that in any
    7  action or proceeding to foreclose the mortgage that  the  mortgagee  may
    8  recover  attorneys'  fees  and/or expenses incurred as the result of the
    9  failure of the mortgagor to perform any covenant or agreement  contained
   10  in  such  mortgage, or that amounts paid by the mortgagee therefor shall
   11  be paid by the mortgagor as additional payment, there shall  be  implied
   12  in such mortgage a covenant by the mortgagee to pay to the mortgagor the
   13  reasonable]  IN  THE  FORECLOSURE OF RESIDENTIAL PROPERTY MORTGAGORS ARE
   14  PROHIBITED FROM RECOVERING  FROM  THE  MORTGAGEES  ANY  attorneys'  fees
   15  and/or  expenses  incurred by the mortgagor as the result of the failure
   16  of the mortgagee to perform any covenant or agreement on its part to  be
   17  performed  under the mortgage or in the successful defense of any action
   18  or proceeding commenced by the mortgagee against the  mortgagor  arising
   19  out of the contract, and an agreement that such fees and expenses may be
   20  recovered [as provided by law in an action commenced against the mortga-
   21  gee  or  by way of counterclaim in any action or proceeding commenced by
   22  the mortgagee against the mortgagor. Any waiver of this section shall be
   23  void as against public policy] IS VOID.
   24    2. For the purposes of this section, "residential real property" means
   25  real property improved by a one- to four-family residence, a condominium
   26  that is occupied by the mortgagor or a cooperative unit that is occupied
   27  by the mortgagor.
   28    S 2. This act shall take effect immediately.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11395-01-3