A new state law signed in Albany on October 20th will allow homeowners who win foreclosure proceedings to have the lender pay their lawyers’ fees.
Supporters say the law balances what they see as the long unfair practice of lenders writing provisions in mortgage contracts that allow them to collect lawyers’ fees from homeowners when the lender successfully forecloses. Some also say that the new law may give homeowners a better chance in court because they will more easily be able to get representation.
The law comes at a time when big banks are coming under increasing scrutiny for lax handling of mortgage documents.
via New Law Lets Homeowners Get Legal Fees in Foreclosure Cases.
The full text of the legislation can be found here. The law will be effective 60 days from signing.
