§ 265-b. Distressed property consulting contracts. 1. Definitions. The\nfollowing definitions shall apply to this section:\n (a) "Homeowner" means a natural person who is the mortgagor with\nrespect to a distressed home loan or who is in danger of losing a home\nfor nonpayment of taxes.\n (b) "Consulting contract" or "contract" means an agreement between a\nhomeowner and a distressed property consultant under which the\nconsultant agrees to provide consulting services.\n (c) "Consulting services" means services provided by a distressed\nproperty consultant to a homeowner that the consultant represents will\nhelp to achieve any of the following:\n (i) stop, enjoin, delay, void, set aside, annul, stay or postpone a\nforeclosure filing, a foreclosure sale or the loss of a home for\nnonpayment of taxes;\n (ii) obtain forbearance from any servicer, beneficiary or mortgagee or\nrelief with respect to the potential loss of the home for nonpayment of\ntaxes;\n (iii) assist the homeowner to exercise a right of reinstatement or\nsimilar right provided in the mortgage documents or any law or to\nrefinance a distressed home loan;\n (iv) obtain any extension of the period within which the homeowner may\nreinstate or otherwise restore his or her rights with respect to the\nproperty;\n (v) obtain a waiver of an acceleration clause contained in any\npromissory note or contract secured by a mortgage on a property in\nforeclosure;\n (vi) assist the homeowner to obtain a loan or advance of funds;\n (vii) assist the homeowner in answering or responding to a summons and\ncomplaint, or otherwise providing information regarding the foreclosure\ncomplaint and process;\n (viii) avoid or ameliorate the impairment of the homeowner's credit\nresulting from the commencement of a foreclosure proceeding or tax sale;\nor\n (ix) save the homeowner's property from foreclosure or loss for\nnon-payment of taxes.\n (d) "Distressed home loan" means a home loan for which an installment\npayment is more than sixty days past due, or a home loan where the\nlender has commenced a foreclosure action. For purposes of this\nparagraph, a "home loan" is a loan in which the debt is incurred by the\nhomeowner primarily for personal, family or household purposes, and the\nloan is secured by a mortgage or deed of trust on property upon which\nthere is located or there is to be located a structure or structures\nintended principally for occupancy of from one to four families which is\nor will be occupied by the homeowner as the homeowner's principal\ndwelling.\n (e) "Distressed property consultant" or "consultant" means an\nindividual or a corporation, partnership, limited liability company or\nother business entity that, directly or indirectly, solicits or\nundertakes employment to provide consulting services to a homeowner for\ncompensation or promise of compensation with respect to a distressed\nhome loan or a potential loss of the home for nonpayment of taxes. A\ndistressed property consultant does not include the following:\n (i) an attorney admitted to practice in the state of New York when the\nattorney is directly providing legal representation to a homeowner\npursuant to a retainer agreement, and has entered an appearance on\nbehalf of a homeowner, in the course of his or her regular legal\npractice. This exception shall not apply to non-attorney individuals\nengaged in activities covered by subdivision two of this section who are\nemployed by, associated with, or consultants for law firms when such law\nfirms are not providing legal representation to a homeowner in a\nforeclosure action pursuant to a retainer agreement;\n (ii) a person or entity who holds or is owed an obligation secured by\na lien on any property in foreclosure while the person or entity\nperforms services in connection with the obligation or lien;\n (iii) a bank, trust company, private banker, bank holding company,\nsavings bank, savings and loan association, thrift holding company,\
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.