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Bill

S 10086

Relates to residential foreclosure actions

2025 Regular Session Introduced by Zellnor Myrie

Tightens finality in residential foreclosures by limiting post-dismissal refilings, speeding motion deadlines, and strengthening homeowner outreach and settlement procedures.

REFERRED TO JUDICIARY
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Bill Summary · S 10086

Summary of Bill S.10086 (2025-2026) – New York

Title

Relates to residential foreclosure actions; known as the "finality in foreclosure act."

Purpose and Intent

The bill introduces measures intended to affect the handling, timing, and finality of residential foreclosure actions in New York. Core goals appear to be:
- Improve access to foreclosure-prevention resources for homeowners facing foreclosure.
- Adjust procedural timelines around settlements, dismissals, and post-dismissal actions to balance timely resolution with protections for homeowners and lenders.
- Limit the ability to extend or revive foreclosure-related claims after dismissal, and tighten motion deadlines after a dismissal/discontinuance.

Key Provisions and Changes

1) Rule 3408 (D) – Notification to Housing Counseling Agencies

  • When a party files a request for judicial intervention in a residential foreclosure action, the court must send either a copy of the request or the defendant’s name, address, and telephone number (if available) to a housing counseling agency or agencies designated by the Division of Housing and Community Renewal for the relevant judicial district.
  • The housing counseling agencies may use this information exclusively to inform the homeowner about housing counseling and foreclosure-prevention services/options.
  • The act of filing a request for judicial intervention does not count as filing for judgment under the statute governing entry of judgment.

2) Rule 3408 (N) – Settlement Conference Abeyance

  • During the ongoing settlement conference process:
    • Motions by either party are generally put in abeyance (held in suspense) except motions related to compliance with the rule and implementing regulations.
    • The time period to take proceedings for entry of default judgment (under the applicable statute) is also put in abeyance and resumes only when the case is removed from the settlement conference calendar.

3) CPLR 205-a (a) – Refiled Action After Dismissal (Residential Foreclosure)

  • If an action on an instrument under CPLR 205-a is timely commenced and ends by dismissal for causes other than voluntary discontinuance, lack of personal jurisdiction, neglect, failure to comply with court orders, or other enumerated dismissals, the original plaintiff (or their executor/administrator if the plaintiff dies and the claim survives) may start a new action on the same transaction within six months after the dismissal order.
  • Conditions for a new action:
    • The new action must have been timely under the limitations period as of the start of the prior action.
    • Service on the original defendant must be completed within the six-month window.
  • Limitations:
    • A successor in interest or assignee cannot commence the new action unless they are acting on behalf of the original plaintiff.
    • The original plaintiff may receive only one six-month extension for a new action.
    • An appeal or post-dismissal motion does not extend the time for commencing a new action or completing service.

4) Real Property Actions and Proceedings Law (RPAPL) – New Section 1394 (Motion Jurisdiction)

  • If no appeal is taken, the court lacks jurisdiction to hear any motion filed more than 30 days after service of the notice of entry of the order dismissing or discontinuing the action, with the exception of a motion to vacate under CPLR 5015.
  • Generally, courts cannot extend the 30-day motion deadline except where required by law.

5) Effective Date

  • The act takes effect immediately.
  • It applies to all actions in which a final judgment of foreclosure and sale has not been enforced by the effective date.

Who is Affected

  • Homeowners and defendants in residential foreclosure actions (who may be recipients of settlement-conferencing notifications and counseling outreach).
  • Foreclosing lenders and plaintiffs in foreclosure actions (who may be subject to amended timelines for post-dismissal actions and more constrained ammunition for motions post-dismissal).
  • Courts and housing counseling agencies designated by the Division of Housing and Community Renewal.

Procedural and Timeline Implications

  • Mandatory outreach to housing counseling agencies at the outset of judicial intervention in foreclosure cases.
  • Settlement conferences: broader stay of most motions while the conference process is ongoing, with specific exceptions.
  • Potential limit on repeated actions after dismissal: a six-month window to refile on the same transaction, with strict conditions and a cap of one such extension.
  • Tightened motion-deadline regime after dismissal: motions must be filed within 30 days of the notice of entry of a dismissal/discontinuance order, barring certain exceptions.

Summary in One Sentence

S.10086 advances foreclosure-resilience and finality by enhancing homeowner outreach, restricting post-dismissal refiling windows, accelerating motion timing after dismissal, and clarifying procedures around settlement conferences in residential foreclosure actions.

Compiled from official sources — confirm details with the bill’s official record.

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