June 24, 2016 08:00 AM
ALBANY, N.Y. (AP) - New York is imposing new requirements on mortgage lenders to maintain abandoned houses before foreclosure.
The law signed Thursday by Gov. Andrew Cuomo threatens banks with civil penalties up to $500 a day for failing to maintain residential properties once they're aware of vacancies.
The old law required they take responsibility following a foreclosure judgment. Cuomo says that has left hundreds of "zombie properties" across the state.
The new law also establishes an electronic statewide registry of abandoned homes, establishes a state hotline where neighbors can report them and requires notices to mortgage borrowers emphasizing their right to stay in houses until foreclosure.
A related measure establishes a State of New York Mortgage Agency fund to buy and sell abandoned properties at below-market rates and demolish those beyond repair.
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Created: June 24, 2016 08:00 AM
(Copyright 2016 by The Associated Press. All Rights Reserved.)