2020 New York Laws
RPA - Real Property Actions and Proceedings
Article 13 - Action to Foreclose a Mortgage
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.
  7.  The department of financial services shall prescribe the telephone
number and web address to be included in the notice.