Bill > A07218

This bill requires banks or financial institutions initiating a residential foreclosure to offer the homeowner (mortgagor) an opportunity to refinance their mortgage under specific conditions. The refinancing offer must be included with the initial foreclosure documents and must be made at the lowest interest rate the bank offered within the 30 days before starting the foreclosure, regardless of the borrower's credit score, income, assets, or payment history. The bill applies only to banks or financial institutions that regularly offer mortgages and are the sole holder of the mortgage on the property. A foreclosing party is only required to make this refinancing offer once per foreclosure proceeding and only once for a specific property while it is owned by the same homeowner. The bill will take effect 60 days after becoming law and will apply to all residential foreclosures initiated on or after that date. The purpose of the bill appears to be providing homeowners facing foreclosure with a potential alternative to losing their property by offering them a chance to refinance under more favorable terms.

Justice

https://www.nysenate.gov/legislation/bills/2025/A7218