NY Requiring Mortgage Lenders To Maintain Abandoned Homes
New York is imposing new requirements on mortgage lenders to maintain abandoned houses before foreclosure.
The law signed Thursday by Gov. Andrew Cuomo threatens banks with civil penalties up to $500 a day for failing to maintain residential properties once they're aware of vacancies.
The old law required they take responsibility following a foreclosure judgment. Cuomo says that has left hundreds of "zombie properties" across the state.
The new law also establishes an electronic statewide registry of abandoned homes, sets up a state hotline where neighbors can report them and requires notices to mortgage borrowers emphasizing their right to stay in houses until foreclosure.
Copyright 2016 The Associated Press.