ALBANY, N.Y. (AP) — New York financial regulators have issued proposed regulations to enforce a new law requiring most mortgage lenders to maintain abandoned houses even before foreclosure.
The Department of Financial Services regulations are subject to a 45-day public comment period following Oct. 12 publication in the State Register.
The law takes effect Dec. 20.
It’s intended to address an estimated 6,000 abandoned residential properties by obligating banks and mortgage servicers to maintain them and expedite foreclosures, including existing “zombie” properties.
Under the law, they are required to report vacant and abandoned properties to the department and submit quarterly reports detailing their actions.
Violations are subject to a civil penalty of $500 per day per property.
The old law required them to take responsibility following foreclosure judgments.