2023 New York Laws › RPA - Real Property Actions and Proceedings › Article 13 - Action to Foreclose a Mortgage › 1307 - Duty to Maintain Foreclosed Property.

§  1307.  Duty  to  maintain  foreclosed  property. 1. A plaintiff who
commences a mortgage foreclosure action, including a lender, an assignee
or a mortgage loan servicer, seeking a judgment of foreclosure and  sale
pursuant   to  section  thirteen  hundred  fifty-one  of  this  article,
involving residential real property,  as  defined  in  section  thirteen
hundred  five  of  this article, that is vacant, or becomes vacant after
commencement of the action or the  issuance  of  such  judgment,  or  is
abandoned  by  the  mortgagor but occupied by a tenant, as defined under
section thirteen hundred five  of  this  article,  shall  maintain  such
property  until  such time as ownership has been transferred through the
closing of title in foreclosure, or other disposition, and the deed  for
such  property  has  been  duly  recorded;  provided, however, that if a
municipality or governmental entity holds a mortgage subordinate to  one
or  more mortgages on the residential real property, the municipality or
governmental entity shall not be subject to  the  requirements  of  this
section.
2.  Such  plaintiff  shall have the right to peaceably enter upon such
property, or to cause others to peaceably enter upon  the  property  for
the  limited purpose of inspections, repairs and maintenance as required
by this section, or as otherwise ordered by  court;  provided,  however,
that if the property is occupied by a tenant, at least seven days notice
must  be  given to such tenant, unless emergency repairs are required in
which case reasonable notice shall be provided to the tenant.
(a) A residential property is deemed vacant for the purposes  of  this
section  if  the  residential property meets the definition of a "vacant
and abandoned residential property" under section thirteen hundred  nine
of  this article or there is an order or finding by a court of competent
jurisdiction or by the municipality in which the residential property is
located that the property is vacant;
(b) A residential property is deemed abandoned by  the  mortgagor  if:
(i)  All  owners  of  the residential property have indicated in writing
that they have abandoned all rights of  possession  to  the  residential
property;
(ii) There is an order or finding by a court of competent jurisdiction
or  by  the  municipality  in which the residential property is located,
either on the initiative of the court or municipality or in response  to
a  complaint  filed with the court or municipality by a tenant in lawful
occupancy, that the property was abandoned by the mortgagor; or
(iii) The plaintiff receives a  complaint  from  a  tenant  in  lawful
occupancy  of  the residential property indicating that the owner of the
residential property has ceased maintaining the property and:
(1) The plaintiff posts a notice  on  the  residential  property  that
would be reasonably visible to the owner of the property indicating that
the  property  is  deemed  abandoned  and  the  owner  must  contact the
plaintiff at a number listed on the notice if the owner  still  occupies
or claims the right to occupy the property; and
(2)  The  plaintiff  has  received no communication within one week of
posting the notice of the owner's intention to occupy the property.
(c) Such plaintiff shall have the right to peaceably enter  upon  such
property,  or  to  cause others to peaceably enter upon the property for
the limited purpose of inspections, repairs and maintenance as  required
by  this  section,  or as otherwise ordered by court; provided, however,
that if the property is occupied by a tenant, at least seven days notice
must be given to such tenant, unless emergency repairs are  required  in
which case reasonable notice shall be provided to the tenant.
(d)  Any  plaintiff  that enters a residential property without a good
faith basis for believing that the property is vacant or  abandoned  and
who  does  not  comply  with  the  requirements of paragraph (b) of this

subdivision shall be subject to a penalty of five hundred  dollars  that
may  be sought by the owner of the residential property or any tenant in
lawful possession of such property. This penalty may be recovered  by  a
property  owner  or  tenant  in lawful occupancy of such property either
within the foreclosure action pending against  the  subject  residential
real property or in a separate action commenced to collect the penalty.
3.  The  municipality  in  which  such  residential  real  property is
located, any tenant lawfully in possession, and a board of managers of a
condominium  in  which  the  premises  are  located  or   a   homeowners
association if said premises are subject to the rules and regulations of
such  an  association,  shall  have the right to enforce the obligations
described in this section in any court of competent  jurisdiction  after
at  least  seven  days notice to the plaintiff in the foreclosure action
unless emergency repairs are required. Any  entity  acting  pursuant  to
this  subdivision shall have a cause of action in any court of competent
jurisdiction against the plaintiff in the foreclosure action to  recover
costs  incurred  as  a result of maintaining the property. The authority
provided by this subdivision shall be in addition to, and shall  not  be
deemed  to  diminish  or  reduce, any rights of the parties described in
this section under existing law against the mortgagor of  such  property
for failure to maintain such property.
4.  In  the event the mortgagor of the property commences a proceeding
in bankruptcy court prior  to  the  completion  of  the  public  auction
ordered  in  the  judgment  of  sale, the duties created by this section
shall be suspended during the pendency of the bankruptcy  proceeding  or
until  such time as an order has been entered in that proceeding lifting
or removing the automatic stay of the foreclosure sale.
5. For the purposes of this section "maintain" shall mean keeping  the
subject  property  in a manner that is consistent with the standards set
forth in the New York property maintenance code chapter 3 sections  301,
302  (excluding  302.2,  302.6  and 302.8), 304.1, 304.3, 304.7, 304.10,
304.12, 304.13, 304.15, 304.16, 307.1,  and  308.1;  provided,  however,
that  if  the  property is occupied by a tenant, then such property must
also be maintained in a safe and habitable condition.
6. A plaintiff shall be relieved of its responsibilities  to  maintain
the  residential  real  property  that  is  the subject of a foreclosure
action for the period that a receiver of such property is serving.
7. Nothing contained in this section shall diminish  in  any  way  the
obligations  pursuant  to any state or local law of the mortgagor of the
property or a receiver of rents and profits appointed in  an  action  to
foreclose  a  mortgage  to maintain the property prior to the closing of
title pursuant to a foreclosure sale.
8. This section shall not preempt,  reduce  or  limit  any  rights  or
obligations   imposed  by  any  local  laws  with  respect  to  property
maintenance and the locality's ability to enforce those laws.