The law recently signed by New York Governor David Paterson will strengthen the legal rights of homeowners in the state and will have some effect on the foreclosure condition of the area, housing market analysts have said. They added that the regulation might help lower the number of houses falling under foreclosed property auction listings in New York.
According to real estate experts, the law might help ease the problem caused by the expanding foreclosure listings in Bronx and in other key areas of New York. The regulation is said to be designed to provide a fairer ground for all parties involved in foreclosure cases.
The Access to Justice in Lending Act, analysts explain, provides homeowners with a legal right to recover lawyers' fees in lawsuits that involve New York home foreclosures. Analysts asserted that this law will put borrowers at an even footing with mortgage servicing firms.
They also added that the regulation comes at a good time since the issues of faulty foreclosure documentation and lender negligence have resulted in questions of whether borrowers' rights are being ignored in the foreclosure process. Proponents of the new law stated that this might help the state lower the levels of residences ending in foreclosed property auction listings.
Prior to the implementation of the law, lenders have the right to get back lawyer fees from the borrower if they were able to successfully bring or find home foreclosures actions against a borrower. Under the new regulation, homeowners or borrowers now also have similar rights. According to proponents of the regulation, this will make a lot of difference for troubled homeowners' causes.
They asserted that homeowners who have valid reasons to fight a foreclosure can now hire lawyers whose services they previously cannot afford. Supporters of the law also asserted that the law means that lenders will be forced to be more careful in processing foreclosures since most homeowners will now have the means to challenge them in courts.
Several nonprofit organizations in New York have supported the new regulation. They stated that this law will help lower the number of homes in foreclosed property auction listings since more homeowners will be encouraged to take their cases to court.