- October 26, 2010
- All New York State Office Counsel, Managers and Agents
- 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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- Bulletins Replaced:
- Related Bulletins:
- NY000371 Purchase of New York "Subprime Home Loans"
- NY000372 New Act Relating to Mortgage Foreclosures and Subprime Loans
- Underwriting Manual:
- Exceptions Manual: