A 4455: Requires a stay of certain foreclosure proceedings where the mortgagor has applied for coverage under the New York state homeowner assistance fund or any local program administering federal emergency mortgage assistance program funds; allows such foreclosure proceedings to proceed against a mortgagor who has caused significant damage to the property.

  
  STATE OF NEW YORK ________________________________________________________________________ 4455 2025-2026 Regular Sessions  IN ASSEMBLY February 4, 2025 ___________ Introduced by M. of A. O'PHARROW -- read once and referred to the Committee on Judiciary AN ACT to stay certain foreclosure proceedings The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Except as provided in section two of this act, foreclosure 2 proceedings for non-payment of mortgage payments that would be eligible 3 for coverage under the New York state homeowner assistance fund adminis- 4 tered by the division of housing and community renewal shall not be 5 commenced against a mortgagor who has applied for such coverage or any 6 local program administering federal emergency mortgage assistance 7 program funds unless or until a determination of ineligibility is made. 8 Except as provided in section two of this act, in any pending foreclo- 9 sure proceeding, whether filed prior to, on, or after the effective date 10 of this act, against a mortgagor who has applied or subsequently applies 11 for benefits under the New York state homeowner assistance fund or any 12 local program administering federal emergency mortgage assistance 13 program funds to cover all or part of the arrears claimed by the peti- 14 tioner, all proceedings shall be stayed pending a determination of 15 eligibility. Evidence of a payment received pursuant to the New York 16 state homeowner assistance fund or a local program administering federal 17 emergency mortgage assistance program funds may be presented in such 18 proceeding and create a presumption that the mortgagor's obligation for 19 the time period covered by the payment has been fully satisfied. 20 § 2. Section one of this act shall not apply if a mortgagor inten- 21 tionally causes significant damage to the property that is the subject 22 of the mortgage agreement, provided: 23 1. If a foreclosure proceeding is not pending on the effective date of 24 this act, the petitioner shall file an affidavit under penalty of perju- 25 ry with the petition attesting that the respondent intentionally caused EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08800-01-5 
 A. 4455 2 1 significant damage to the property, with a specific description of the 2 damages alleged. 3 2. If a foreclosure proceeding is pending on the effective date of 4 this act, but the petitioner has not previously alleged that the mortga- 5 gor intentionally caused significant damage to the property, the peti- 6 tioner shall be required to submit a new petition with such allegations 7 and comply with all notice and service requirements under article thir- 8 teen of the real property actions and proceedings law. 9 3. For the purposes of this act, a mere allegation of the behavior by 10 the petitioner or an agent of the petitioner alleging such behavior 11 shall not be sufficient evidence to establish that the mortgagor has 12 intentionally caused significant damage to the property. 13 4. If the petitioner fails to establish that the mortgagor inten- 14 tionally caused significant damage to the property: (i) if the 15 mortgagor's application is still pending, the court shall stay or 16 continue to stay any further proceedings pending a determination of 17 eligibility pursuant to section one of this act; or (ii) if the mortga- 18 gee has accepted payment of mortgage arrears and agreed not to foreclose 19 the mortgage, the court shall dismiss the proceeding with prejudice. 20 5. If the petitioner establishes that the mortgagor intentionally 21 caused significant damage to the property, the proceeding may continue 22 pursuant to article thirteen of the real property actions and 23 proceedings law. 24 § 3. This act shall take effect immediately.