Albany lawmakers urge Hochul to sign bill that’ll put foreclosure statute of limitations back at 6 years

A bunch of Democratic lawmakers in Albany led by state Sen. James Sanders (D-Queens) is pushing Gov. Kathy Hochul to sign a bill that goals to preserve the statute of limitations beneath which lenders can begin authorized proceedings in instances of seize in six years, earlier than the November 8 Election subsequent Tuesday.

The bill, known as Foreclosure Abuse Prevention Act (FAPA) – S.5473-D, handed each homes with bipartisan help – 51 to 11 within the state Senate and 107 to 40 within the Assembly – and has been sitting on the governor’s desk awaiting his signature for a number of months. Sanders, together with 55 different Black, Puerto Rican, Hispanic and Asian members of the NYS legislative caucus, wrote a letter to the governor earlier this week, urging her to sign the bill “immediately.”

In an interview, Sanders instructed amNewYork Metro that it will be significant for Hochul to sign the bill as quickly as potential as a result of of the excessive quantity of foreclosure instances in his municipality – the very best within the metropolis.

“It’s important to get a commitment as soon as possible because the wheels of the justice system are still turning, and in this case, bringing people down,” Sanders stated. “Queens County was reported to have the very best quantity of foreclosures in New York. So beneath these situations, we in Queens have each obligation to be certain that our neighbors have a good likelihood to make their case. And if the banks cannot make a good case inside six years, and that appears lengthy sufficient, then they need to be fired.”

Hochul is dealing with GOP challenger Rep. Lee Zeldi in what has develop into a really shut race for the Governor’s Mansion subsequent Tuesday. Although Sanders, who has endorsed and campaigned for the governor, stated that whereas he would love Hochul to sign the bill, he is aware of she is way extra possible to sign it than a hypothetical Governor Zeldin.

“I wish she had signed this bill a long time ago,” Sanders stated. (*6*)

The laws is designed to override the state Court of Appeals’ 2021 choice in Freedom Mortgage Corporation v. Engel, Sanders stated, which gave lenders the choice to prolong the present six-year statute of limitations for lenders to convey foreclosure instances towards the mortgage holders. In impact, Sanders stated, the ruling gave lenders the ability to proceed submitting lawsuits over the identical mortgage, even after six years.

“To be clear, without the statute of limitations, banks can go back 20 years, 30 years, 50 and 100 years in the past and catch cases where they have repeatedly lost, and that allows them to continue until they find the best justice they can buy,” Sanders stated.

Currently, beneath a decades-old state authorized precept, Sanders stated, if lenders do not begin authorized proceedings towards householders with mortgages inside six years of first going into foreclosure, the lawsuit is void.

The function of FAPA is to restore the authorized normal across the statute of limitations on the exemption to six years. This would forestall any occasion to a lawsuit from having the ability to unilaterally change the statute of limitations.

“Our FAPA bill is designed to bring us back to a state of justice that we had before we were accidentally kicked out,” Sanders stated.

While Sanders is urging Hochul to sign the bill instantly, he stated he realizes she has practically a thousand payments on her desk and possibly simply hasn’t been ready to think about it but.

“Well, discussions are ongoing with the governor and her staff on this issue,” Sanders stated. “To be sincere, the governor has shut to a thousand payments on her desk. It’s potential this did not make it onto her radar display.”

In a press release to amNewYork Metro, Hochul spokeswoman Hazel Crampton-Hays famous that the governor has signed about 600 payments up to now this 12 months. She didn’t deal with the FAPA bill, however stated “we are considering the remaining legislation.” Those practically 600 payments make up 57% of the roughly 1,000 payments handed by each chambers of the Legislature this 12 months, in accordance to the governor’s workplace.

“Since taking office, Governor Hochul has signed nearly 1,000 pieces of legislation, including almost 600 so far this year, that strengthen public safety, keep New Yorkers safe from gun violence, ensure quality education for every child, provided tax relief to New York’s young workers. Yorkers, and supporting small businesses, and we are reviewing the remaining legislation.”