New York Mortgage

In addition, the New York Housing Estate Sealing Act (CPLR 3408) now includes the new Home Loans concept. The obligation to give prior warning specifically for the reversal of mortgage loans, however, came into force on 12 May 2018. According to the new Act, creditors, assignees or service providers are obliged to give advance warning for acts initiated after 12 May 2018 at least 90 calendar days prior to the commencement of proceedings against the Mortgagor or Mortgagors at the Land plot and all other registered postal adresses.

Legal requirements determine the communication languages. While the 90-day wait does not count or does not count under certain conditions (i.e. when a debtor no longer lives in the main residence), the 90-day wait is a suspensive requirement which, if strict compliance is not met, may result in an enforcement suit being overturned.

In addition, the Exclusive Party is legally obligated to send the communications by First Class and registered letter. It is clear from case practice that evidence of shipment may include the need for quality postal traceability records and certificated receipt for messages sent by registered post. Lastly, because the New York Housing Estate Insulation Act contains the new home loans concept, the change eliminates any persistent doubts that in most cases offshore mortgages are mandatory.

While there are some exemptions for inverse mortgage failures, in practice the court is likely to hold conciliation meetings in all inverse mortgage cases before it can be established whether the case is covered by an exemption.