Bulletin: NY000461

Date:
October 26, 2010
To:
All New York State Office Counsel, Managers and Agents
RE:
Amendment to Real Property Law - Mortgagor Right to Recover Legal Fees

This law, signed on October 20 and effective December 20, 2010, adds a new Section 282 to the Real Property Law to allow a mortgagor in a residential foreclosure action (1-4 family residence, condo occupied by mortgagor or co op occupied by mortgagor) the right to recover attorneys' fees and other costs in certain instances.

1. If there's a provision in the mortgage where the lender may recover attorneys' fees and other costs, then there will be implied a reciprocal right for the mortgagor for its attorneys' fees/costs if the mortgagor successfully defends against the foreclosure and/or expenses incurred due to the lender's failure to perform under the mortgage.

2. Any waiver of the section is void as against public policy.

3. The law applies to proceedings commenced, and residential real property mortgages in existence, on or after December 20.

The law, titled "Access to Justice in Lending Act", is posted at http://assembly.state.ny.us/leg/?default_fld=&bn=A01239%09%09&Text=Y

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THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
NY000371 Purchase of New York "Subprime Home Loans"
 
NY000372 New Act Relating to Mortgage Foreclosures and Subprime Loans
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None