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