Bulletin: NY000324

Date:
August 23, 2007
To:
All New York State Office Counsel, Managers and Agents
RE:
New requirements for foreclosure actions

New York  State has passed a new law (Chpt. 458 of the Laws of 2007) requiring additional notice to an owner of 1-3 family dwellings in a foreclosure proceeding.

A new Section 1320 Real Property Actions and Proceedings Law requires the summons in a foreclosure of a 1-3 family to contain a special notice.  To view Chapter 458 of the Laws of 2007 and the required notice, click here.

The following exception must be added in a title coming through foreclosure after August 1, 2007:

Proof of compliance with Section 1320 of the Real Property Actions and Proceedings Law is required. (Note: This Section requires the summons in an action to foreclose a mortgage on a residential property containing not more than three units to contain a prescribed notice in bold-face.)

Your examiners must now provide a copy of the summons in a foreclosure action to determine if the attorney complied with the new law.

Also changed by the law was CPLR 3215 (g) (3) (iii).  A copy of the summons must be mailed again to the defendant at least 20 days prior to the entry of a default judgment.

The following exception must be added in a title coming through foreclosure after August 1, 2007:

Proof of compliance with Section 3215(g)(3) of the Civil Practice Law and Rules is required. (Note: Section 3215(g)(3)(iii) has been amended to extend the requirements of Section 3215(g)(3) of the Civil Practice Law and Rules to residential mortgage foreclosure actions.)

Your examiner must provide a copy of the proof of mailing of the summons to comply with CPLR 3215 (g) (3) (iii).

If an order of foreclosure was not obtained prior to August 1, 2007, company will require mailing, after August 1, 2007, of the summons with the appropriate notice.  If the defendant defaulted, company will require the second mailing of the summons pursuant to CPLR 3215 (g) (3) (iii).

NOTICE

YOU ARE IN DANGER OF LOSING YOUR HOME

If you do not respond to this summons and complaint by serving a copy of the answer on the attorney for the mortgage company who filed this foreclosure proceeding against you and filing the answer with the court, a default judgment may be entered and you can lose your home.

Speak to an attorney or go to the court where your case is pending for further information on how to answer the summons and protect your property.

Sending a payment to your mortgage company will not stop this foreclosure action.

YOU MUST RESPOND BY SERVING A COPY OF THE ANSWER ON THE ATTORNEY FOR THE PLAINTIFF (MORTGAGE COMPANY) AND FILING THE ANSWER WITH THE COURT.

If you have any questions regarding this bulletin, please contact Stewart Tile Insurance Company Agency Legal Services.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None