Schneiderman touts new foreclosure requirements on banks
A new law will crack down on '"zombie houses." Governor Andrew Cuomo signed the law this past week. It now means new requirements for mortgage lenders. They must maintain abandoned houses before foreclosure.
State Attorney General Eric Schneiderman appeared in Buffalo after the bill signing, noting a big problem with vacant properties in this region.
"It is tremendously important that we understand we are still digging ourselves out of the (2008) crash," Schneiderman said. "The work we have done recovering funds from the banks has produced tremendous results. We're funding 90 legal counseling and housing service agencies. Tens of thousands of New York families are in their homes who would not be there otherwise without a lawyer or counselor there to guide them through the foreclosure process."
The new law threatens banks with civil penalties up to $500 a day for failing to maintain residential properties once they're aware of vacancies. A state hotline has also been established for neighbors to report those properties.