Courts, Legal Services Gear Up For Pre-Foreclosure Settlement Meetings


By Joel Stashenko ( entire article)
October 01, 2008

ALBANY – New York’s legislative response to the residential mortgage foreclosure crisis has created a breather of sorts in the foreclosure process as courts, attorneys and advocates for imperiled homeowners prepare to exercise their rights and obligations under the new law.Court administrators and legal services providers for the poor said they are working out how to provide mandatory pre-foreclosure settlement hearings to the thousands of borrowers with subprime mortgages facing default, as provided for under the anti-foreclosure statute.

The law also created a new “workout” period starting Sept. 1 in which lenders must give borrowers 90 days’ warning of their intention to serve a summons and complaint of foreclosure.

 

The article goes into significant detail about OCA’s attempts to come up with a process to comply with the new law including an administrative order signed on Sept. 24 by Judge Pfau to file a specialized request for judicial intervention with county clerks when initiating a foreclosure summons and complaint.