Bill > A04455

This bill provides temporary protection for homeowners facing foreclosure who have applied for assistance through the New York State Homeowner Assistance Fund or local federal emergency mortgage assistance programs. Specifically, foreclosure proceedings must be automatically stayed (paused) while the homeowner's application is being reviewed, preventing lenders from moving forward with foreclosure during this time. If the homeowner receives assistance through these programs, any payment made can be used to create a presumption that the mortgage obligations for that period have been satisfied. However, this protection does not apply if the homeowner has intentionally caused significant damage to the property. To prove intentional damage, the lender must submit a detailed, sworn affidavit and meet specific legal requirements. If the lender cannot prove intentional damage, the foreclosure stay will remain in place or the case may be dismissed. The bill aims to provide a safeguard for homeowners experiencing financial hardship, particularly in the aftermath of economic challenges like the COVID-19 pandemic, while also protecting lenders from potential property destruction.

Justice

https://www.nysenate.gov/legislation/bills/2025/A4455