NY Requiring Mortgage Lenders to Maintain Abandoned Homes

[Eugene]

Source: Associated Press

New York imposed new requirements Thursday on mortgage lenders to maintain abandoned houses before foreclosure.

The law signed by Gov. Andrew Cuomo threatens banks with civil penalties up to $500 a day for failing to maintain residential properties once they're aware of vacancies.

The old law required they take responsibility following foreclosure judgments. Cuomo said that has left hundreds of "zombie properties" across the state.

"The banks have to step up and recognize their responsibility, and if they don't do it they're going to be fined," Cuomo told a gathering of officials and press in front of a vacant house in suburban Syracuse.

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Read more: http://abcnews.go.com/US/wireStory/ny-requiring-mortgage-lenders-maintain-abandoned-homes-40081669

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By MICHAEL VIRTANEN, ASSOCIATED PRESS ALBANY, N.Y. — Jun 23, 2016, 3:38 PM ET

[newthinking]

1. Good. If they have to think about after the foreclosure they may be more willing to work with

the current owners.

[bvar22]

2. This will be interesting,

and I hope every state copies this law.

It is actually to the bank's advantage to maintain and improve the property if they hope to sell it again.

[Ruby the Liberal]

3. I love this

Protects the neighboring homeowners. Win-win.

[jtuck004]

4. Too bad it wasn't illegal to prey on homeowners in the first place. n/t

[FuzzyRabbit]

5. What do we have more of?

Homeless people or unoccupied homes?

[Taitertots]

6. Detroit needs this BADLY.

One of the biggest problem facing Detroit is corporations holding properties and refusing to maintain them.

[annabanana]

7. About damn time! . . . . . n/t