Companion bills in have been introduced in both the New York State Senate and Assembly in a multi-pronged effort to reduce the increased number of real estate foreclosures. These bills put more of an onus on banks and other financial institutions.
State Sen. Tim Kennedy, D-Buffalo, is pushing for the bills, which will require financial institutions to notify those property owners whom have fallen behind on mortgage payments of a number of resources, services, and agencies that they can work with to help that resolve their situation.
Apart from helping owners find helpful resources, the financial institutions will also be required to send a written notice to the property owner if a mortgage is in default by 30 days. The goal is to help inform the home owner of their status and point out opportunities to avert the foreclosure process. It will also explain that the owner has a responsibility to maintain the property, even if it is in foreclosure.