New Home Equity Theft Law In New York Continues To Hurt The Homeowners It Was Supposed To Protect!

The new law that I have written about in earlier posts is continuing to make life miserable for NY homeowners in foreclosure. I have personally seen investors run scared and leave homeowners in a lurch. Many people want to sell their properties to end a foreclosure and potential buyers are terrified of the 2 year rescission period under the new law. While I think the risk of rescission is minimal if the transactional documents are done properly, buyers and investors are still reluctant to buy foreclosed properties. They are also afraid of the additional new requirement that at least 82% of the consideration in any transaction pass to the homeowner. I have been able to help some homeowners, but not everyone who calls me. And I get calls all day every day from people in foreclosure. It seems like there is a mortgage default epidemic.

In some cases, homeowners are being forced into bankruptcy or simply lose their home – all thanks to our brillant New York legislators who didn’t have the foresight to see what they were doing. This is called the law of unintended consequences. More to follow as I talk daily to frightened homeowners.