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.
Because renters are innocent victims of the foreclosure crisis, losing their homes through no fault of their own when their landlord goes into foreclosure;
Because, renters generally have no knowledge of a landlord's foreclosure status;
Because, recent analysis reveals that the crisis is significantly impacting renters across the state;
Because, New York University’s Furman Center for Real Estate and Urban Policy found that in New York City, well over half of all foreclosure filings in 2007 were on two to four family or multi-family buildings, and a growing body of data and anecdotal evidence indicates that the problem is not isolated to New York City;
Because heart wrenching stories of renters losing their homes have appeared in newspapers nationwide. These renters often are completely unaware that their landlords are in default until utilities are shut off or an eviction notice appears on their door.
Because, tenants lose not just their homes, but also their security deposits. Finding a new rental on short notice is often difficult, especially for low-income tenants who face increasing competition for fewer affordable apartments on the market.
Because, even when renters have the right to stay in their homes after foreclosure— when the tenant holds a Section 8 voucher or is subject to rent stabilization, for example —they are frequently intimidated or improperly lured out of their homes with offers of “cash for keys.”
Therefore, we implore Assembly Speaker Sheldon Silver to bring his version of S8082-2009 to the floor for a vote, and send it to Governor Cuomo for signing.
The time to save Innocent Renters from Foreclosure Eviction is NOW! Please Pass and Sign S8082-2009 As Soon As Possible to Help Keep Innocent Tenants in their Homes.