Senator James Sanders Jr. has called on the governor to sign his Anti-Foreclosure Abuse Act ASAP because it is needed more than ever.
Sen. James Sanders Jr. said, “Homeowners who are being foreclosed will be the biggest winners when this important foreclosure bill becomes law. This law will level the playing field and ensure that certain Eliminating abuse would go a long way in helping homeowners save their homes from foreclosure, which lenders have used in court to harm homeowners.”
This bill provides the clarification needed to amend recent judicial decisions. These decisions have undermined a longstanding precedent that exempts financial institutions from the effects of long-standing statutes of limitations. Mortgage delinquency rates have skyrocketed in the wake of the COVID-19 pandemic.
The bill narrowly addresses the issue of individual statutes of limitations in foreclosure cases. It also effectively dismisses the pernicious aspects of the recent decisions of Engel and Ramirez.
Senator Julia Salazar said, “This bill is very important to the many homeowners in the Brooklyn area who have fought to protect their homes, and to communities with particularly high rates of foreclosure filings.” Given the alarming number of homeowners facing foreclosure or foreclosure, it’s important to protect the fairness of the foreclosure process and minimize uncertainty for homeowners. And we can keep financial institutions from getting around the long statute of limitations to take advantage of distressed homeowners.”
Jacob Inwald, Director of Foreclosure Legal Services NYC, said: The principle of limitation applies to foreclosure lenders just as it applies to all other types of litigants. It will become clear that foreclosure lenders are not a special category of plaintiff and cannot freely manipulate the statute of limitations to suit their needs.”
The Foreclosure Abuse Prevention Act passed the Senate on May 3, 2022, by a vote of 52 to 10. The next step is for the bill to be submitted to Governor Ho Chul for his signature.