New York Courts Will Hold Lawyers Accountable In Foreclosures

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The robosigning fiasco has caused many states to rethink the foreclosure process. Specifically, someone has to be made responsible when the wheels fall off the wagon. New York has instituted a new rule for residential foreclosure filings. The filing requirement is to preserve integrity of the foreclosure process.

Plaintiffs will be required to file an affidavit certifying that they have taken "reasonable steps" to verify the accuracy of documents presented to the courts. The affirmation includes but is not limited to inquiries to banks, lenders and loan servicers.

Chief Judge Jonathan Lippman said, "We cannot allow the courts in New York State to stand by idly and be party to what we now know is a deeply flawed process, especially when that process involves basic human needs - such as a family home - during this period of economic crisis."

In New York State, attorneys already have an obligation to ensure that the documents they present to the court are valid, but New York Chief Judge Jonathan Lippman said having them sign something affirming that all papers got a proper review will hold them accountable like never before.

"We want to make sure that everyone is focusing like a laser on these particular types of proceedings," he said. "It puts them on notice. That's what this is all about. We all have to make doubly sure that we are doing what we should be doing in the first place."

The rule requiring a signed affirmation applies to both new cases and the 78,000 foreclosure actions already under way in New York courts.

Lawyers handling pending foreclosure actions will probably need to go back to their clients and verify that all proper steps were followed, Lippman said. The form created by the court requires the lawyers to give the name of the bank employee who affirmed that the records were accurate and the date the conversation took place.

The president of the New York State Bar Association, Stephen Younger, issued a statement praising the new rule. "The chief judge has taken swift steps to address a nationwide problem in foreclosure actions," he said.
Some New York judges have complained loudly about rampant errors of varying severity in legal filings by banks seeking to foreclose on record numbers of homeowners.

To view a copy of the affirmation that the lawyers will sign, please click on the link below.

http://www.courts.state.ny.us/attorneys/foreclosures/Affirmation-Foreclosure.pdf

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Related articles

• New York's New Rule: Lawyers Must Truly Certify Foreclosure Documents (dailyfinance.com)
• New York requires lawyers to sign off on all foreclosures (usatoday.com)