‘Zombie’ Properties Targeted for Civil Action

New York moved closer to civil penalties for owners of abandoned properties, especially targeting large financial institutions that have been less than responsible for how they handle homes subject to foreclosure. This week, a group of 16 mayors endorsed Attorney General Eric T. Schneiderman’s Abandoned Property Neighborhood Relief Act, calling on state lawmakers to vote on the proposal.

In a press release, backers of the proposal said it “… would provide critical support to communities that have been plagued by vacant and abandoned properties. Among other measures, the bill would make lenders and banks responsible for delinquent properties soon after they are abandoned – not at the end of a lengthy foreclosure process – and to pay for their upkeep. Banks or their servicers would be required to notify delinquent homeowners of their right to stay in their homes until ordered by a judge.