New York Governor Andrew M. Cuomo signed legislation yesterday to combat blight created by bank foreclosure zombie properties. The new law will impose a pre-foreclosure duty on banks and mortgage servicers to maintain zombie homes, and expediting foreclosure for vacant and abandoned properties to get them back on the market.
The new legislation also enhances mandatory mortgage settlement conferences, establishes a consumer Bill of Rights to help homeowners avoid foreclosure, and also creates a community restoration fund. The fund will help prevent blight of vacant and abandoned properties by expediting the rehabilitation, repair and improvement of these properties.
Governor Cuomo had said,
“For many New Yorkers, homes are our single most important investment, but that investment can be undermined by the blight of neglected and abandoned properties. For each zombie home that we cure and for each that we prevent with this legislation, we are saving entire neighborhoods from the corrosive effect of blight and neglect. I thank my colleagues in the Assembly and Senate for seeing a crisis and helping to turn it into an opportunity for people to realize the great American Dream of homeownership.”
Read more about the new law from NY Governor Cuomo’s ofice.