New Law Permits Borrower to Raise the Bank's Lack of Standing When the Borrower is in Default in Answering the Summons and Complaint.
Governor Cuomo recently signed a new law (NYS bill S5160) that now gives a substantial right to borrowers in a foreclosure action. The new law is RPAPL Section 1302-a. Before this new law, if the borrower defaulted in the foreclosure action, the borrower would have had to file a motion seeking to set aside his/her default and show a good reason for defaulting along with a showing that there were meritorious defenses to the foreclosure. Many such motions, however, were denied because the borrower could not prove good cause for defaulting unless the default occurred very early in the foreclosure action. Under the new law, the borrower can assert standing anytime and even after a foreclosure sale if the borrower was in default. This new law which is effective immediately permits borrowers with another bite at the apple and it's a potential game changer. 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.