More About Zombies
In 2016, the Local Initiatives Support Corporation (LISC) made $13 million available in grant funding to municipalities across New York to help them address housing vacancy and blight, with an emphasis on “zombie” property prevention and enforcement. Zombies are homes abandoned by owners under the threat of foreclosure but for which the process has yet to be completed. It can take years for them to move through to resolution, and in the meantime, properties deteriorate and drag down the surrounding area.
The LISC grant funds were made available as a result of a bank settlement agreement negotiated by the New York State Attorney General.
Zombie Property Remediation ACt of 2016
The law requires banks and mortgage lenders to inspect, secure and maintain foreclosure properties regularly.
The law requires large banks or mortgage lenders to register vacant and abandoned properties with the New York State Department of Financial Services to be added to their property registry.
The law allows banks and mortgage lenders to complete an expedited mortgage foreclosure for abandoned property.
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The law enhances consumer protection enacted to safeguard homeowners after the 2008 subprime mortgage crisis.