One of the intentions of the sweeping foreclosure prevention
legislation (Chapter 507 of the Laws of 2009) was to give tenants
notice if the building they reside in is in foreclosure and gives
tenants of residential property the right to remain in occupancy
following a foreclosure for the greater of 90 days or their remaining
lease term. However, the definition of "tenant" inadvertently omitted
those tenants who became tenants subsequent to the commencement of
foreclosure proceedings from the notice provisions of the law.
Prior to the new notice requirements in RPAPL 1203(4), tenants were
often unaware of a foreclosure action instituted against their
landlord/mortgagor. Consequently, since the foreclosure action may
take many months, intervening leases or rental agreements may be
entered into with the landlord/mortgagor. This bill clarifies
language to ensures that all tenants, those at the initial filing of
the Notice of Pendency, and any subsequent tenants will receive the
same notice and protections afforded under the law.