New law permits homeowners/borrowers to raise a "lack of standing" defense if it wasn't previously raised in their original Answer
Governor Cuomo recently signed a new law (NYS bill S5160). The new law, RPAPL Section 1302-a, is a peculiar law because it does not really provide much protection to homeowners in foreclosure. Under the new law, a borrower can assert standing later on in the foreclosure proceeding so long as the borrower resides in the property being foreclosed on and so long as said borrower timely answered the complaint, but failed to raise standing in their answer. This Defense can be raised as late as after the judgment of foreclosure and sale so long as the homeowner did not contest the granting of such judgment. This law is only helpful if the homeowner/borrower answered the complaint and failed to raise standing, but this is not the case typically because most answers assert a standing defense. The law only appears to benefit homeowners when in fact it really does little. The law would have been more useful and practical if it had permitted the defense of standing to be raised in cases where the homeowner failed to serve an answer to the foreclosure complaint. The new law can be found by clicking the following link below.
Arnold M. Bottalico is an experienced Long Island, NY foreclosure attorney with over 25 years of experience, and he welcomes your questions and comments.