N.Y. Real Property Actions & Proceedings Law § 1304: Required prior notices

§ 1304. Required prior notices. 1. Notwithstanding any other provision

of law, with regard to a home loan, at least ninety days before a

lender, an assignee or a mortgage loan servicer commences legal action

against the borrower, or borrowers at the property address and any other

address of record, including mortgage foreclosure, such lender, assignee

or mortgage loan servicer shall give notice to the borrower in at least

fourteen-point type which shall include the following:

"YOU MAY BE AT RISK OF FORECLOSURE. PLEASE READ THE FOLLOWING NOTICE

CAREFULLY"

"As of ___, your home loan is ___ days and ___ dollars in default.

Under New York State Law, we are required to send you this notice to

inform you that you are at risk of losing your home.

Attached to this notice is a list of government approved housing

counseling agencies in your area which provide free counseling. You can

also call the NYS Office of the Attorney General's Homeowner Protection

Program (HOPP) toll-free consumer hotline to be connected to free

housing counseling services in your area at 1-855-HOME-456

(1-855-466-3456), or visit their website at http://www.aghomehelp.com/.

A statewide listing by county is also available at

http://www.dfs.ny.gov/consumer/mortg nys np counseling agencies.htm.

Qualified free help is available; watch out for companies or people who

charge a fee for these services.

Housing counselors from New York-based agencies listed on the website

above are trained to help homeowners who are having problems making

their mortgage payments and can help you find the best option for your

situation. If you wish, you may also contact us directly at __________

and ask to discuss possible options.

While we cannot assure that a mutually agreeable resolution is

possible, we encourage you to take immediate steps to try to achieve a

resolution. The longer you wait, the fewer options you may have.

If you have not taken any actions to resolve this matter within 90

days from the date this notice was mailed, we may commence legal action

against you (or sooner if you cease to live in the dwelling as your

primary residence.)

If you need further information, please call the New York State

Department of Financial Services' toll-free helpline at (show number) or

visit the Department's website at (show web address).

IMPORTANT: You have the right to remain in your home until you receive

a court order telling you to leave the property. If a foreclosure action

is filed against you in court, you still have the right to remain in the

home until a court orders you to leave. You legally remain the owner of

and are responsible for the property until the property is sold by you

or by order of the court at the conclusion of any foreclosure

proceedings. This notice is not an eviction notice, and a foreclosure

action has not yet been commenced against you.

1-a. Notwithstanding any other provision of law, with regard to a

reverse mortgage home loan, at least ninety days before a lender, an

assignee or a mortgage loan servicer commences legal action against the

borrower or borrowers at the property address and any other addresses of

record, including reverse mortgage foreclosure, such lender, assignee or

mortgage loan servicer shall give notice to the borrower in at least

fourteen-point type except for the heading which shall be in at least

sixteen-point type which shall include the following:

"YOU COULD LOSE YOUR HOME TO FORECLOSURE.

PLEASE READ THE FOLLOWING NOTICE CAREFULLY.

Date

Borrower's address

Loan Number:

Property Address:

Dear Borrower(s):

As of ___________, we as your lender or servicer claim that your reverse

mortgage loan is ___ days in default. Under New York State Law, we are

required to send you this notice to inform you that you may be at risk

of losing your home.

We, the lender or servicer of your loan, are claiming that your reverse

mortgage loan is in default because you have not complied with the

following conditions of your loan:

_____ You are not occupying your home as your principal residence

_____ You did not submit the required annual certificate of occupancy

_____ The named borrower on the reverse mortgage has died

_____ You did not pay property taxes

{Servicer name} paid your property taxes for the following

time periods:___________________________

______________________ {quarter/year}

_____ You did not maintain homeowner's insurance

{Servicer name} purchased homeowner's insurance for you on the

following date(s) and for the following cost(s):

____________________________________

_____ You did not pay water/sewer charges

{Servicer name} paid water/sewer charges for you on the

following date(s) and for the following cost(s):

________________________

_____ You did not make required repairs to your home

If the claim is based on your failure to pay property or water and sewer

charges or maintain homeowner's insurance, you can cure this default by

making the payment of $____________ for the advancements we made towards

these payments on your behalf.

You have the right to dispute the claims listed above by contacting us,

by calling ___________ or sending a letter to __________________. This

may include proof of payments made for property taxes or water and sewer

charges or a current declaration page from your insurance company, or

any other proof to dispute the servicer's claim.

If you are in default for failure to pay property charges (property

taxes, homeowner's insurance and/or water/sewer charges) you may qualify

for a grant, loan, or re-payment plan to cure the default balance owed.

If you are in default due to the death of your spouse, you may be

considered an eligible "Non-Borrowing Spouse" under a HUD program which

allows you to remain in your home for the rest of your life.

If you are over the age of 80 and have a long term illness, you may also

qualify for the "At-Risk Extension," which allows you to remain in your

home for one additional year and requires an annual re-certification.

Attached to this notice is a list of government-approved housing

counseling agencies and legal services in your area which provide free

counseling. You can also call the NYS Office of the Attorney General's

Homeowner Protection Program (HOPP) toll-free consumer hotline to be

connected to free housing counseling services in your area at

1-855-HOME-456 (1-855-466-3456), or visit their website at

http://www.aghomehelp.com. A statewide listing by county is also

available at

http://www.dfs.ny.gov/consumer/mortg nys np counseling agencies.htm.

You may also call your local Department of Aging for a referral or call

311 if you live in New York City.

Qualified free help is available; watch out for companies or people who

charge a fee for these services.

You may also contact us directly at __________ and ask to discuss all

possible options to allow you to cure your default and prevent the

foreclosure of your home. While we cannot ensure that a resolution is

possible, we encourage you to take immediate steps to try to achieve a

resolution. The longer you wait, the fewer options you may have.

If you have not taken any actions to resolve this matter within 90 days

from the date this notice was mailed, we may commence legal action

against you (or sooner if you cease to live in the dwelling as your

primary residence).

If you need further information, please call the New York State

Department of Financial Services' toll-free helpline at 877-226-5697 or

visit the Department's website at http://www.dfs.ny.gov.

IMPORTANT: You have the right to remain in your home until you receive a

court order telling you to leave the property. If a foreclosure action

is filed against you in court, you still have the right to remain in the

home until a court orders you to leave. You legally remain the owner of

and are responsible for the property until the property is sold by you

or by order of the court at the conclusion of any foreclosure

proceedings. This notice is not an eviction notice, and a foreclosure

action has not yet been commenced against you."

A lender, assignee or mortgage loan servicer of a reverse mortgage

home loan which provides notice to the borrower as required by this

subdivision is not required to provide notice to such borrower with

regard to such loan pursuant to subdivision one of this section.

2. The notices required by this section shall be sent by such lender,

assignee (including purchasing investor) or mortgage loan servicer to

the borrower, by registered or certified mail and also by first-class

mail to the last known address of the borrower, and to the residence

that is the subject of the mortgage. The notices required by this

section shall be sent by the lender, assignee or mortgage loan servicer

in a separate envelope from any other mailing or notice. Notice is

considered given as of the date it is mailed. The notices required by

this section shall contain a current list of at least five housing

counseling agencies serving the county where the property is located

from the most recent listing available from department of financial

services. The list shall include the counseling agencies' last known

addresses and telephone numbers. The department of financial services

shall make available on its websites a listing, by county, of such

agencies. The lender, assignee or mortgage loan servicer shall use such

lists to meet the requirements of this section.

3. The ninety day period specified in the notices contained in

subdivisions one and one-a of this section shall not apply, or shall

cease to apply, if the borrower has filed for bankruptcy protection

under federal law, or if the borrower no longer occupies the residence

as the borrower's principal dwelling. Nothing herein shall relieve the

lender, assignee or mortgage loan servicer of the obligation to send

such notices, which notices shall be a condition precedent to commencing

a foreclosure proceeding.

4. The notices required by this section and the ninety day period

required by subdivisions one and one-a of this section need only be

provided once in a twelve month period to the same borrower in

connection with the same loan and same delinquency. Should a borrower

cure a delinquency but re-default in the same twelve month period, the

lender shall provide a new notice pursuant to this section.

5. For any borrower known to have limited English proficiency, the

notices required by subdivisions one and one-a of this section shall be

in the borrower's native language (or a language in which the borrower

is proficient), provided that the language is one of the six most common

non-English languages spoken by individuals with limited English

proficiency in the state of New York, based on United States census

data. The department of financial services shall post the notices

required by subdivisions one and one-a of this section on its website in

the six most common non-English languages spoken by individuals with

limited English proficiency in the state of New York, based on the

United States census data.

6. (a) (1) "Home loan" means a loan, including an open-end credit

plan, in which:

(i) The borrower is a natural person;

(ii) The debt is incurred by the borrower primarily for personal,

family, or household purposes;

(iii) The loan is secured by a mortgage or deed of trust on real

estate improved by a one to four family dwelling, or a condominium unit,

in either case, used or occupied, or intended to be used or occupied

wholly or partly, as the home or residence of one or more persons and

which is or will be occupied by the borrower as the borrower's principal

dwelling; and

(iv) The property is located in this state.

(2) A home loan shall include a loan secured by a reverse mortgage

that meets the requirements of clauses (i) through (iv) of subparagraph

one of this paragraph.

(b) "Lender" means a mortgage banker as defined in paragraph (f) of

subdivision one of section five hundred ninety of the banking law or an

exempt organization as defined in paragraph (e) of subdivision one of

section five hundred ninety of the banking law.

7. The department of financial services shall prescribe the telephone

number and web address to be included in the notice.