ALBANY — New York is getting help from 11 major financial institutions in its fight against zombie properties.
Gov. Andrew Cuomo announced Monday that the group of banks, credit unions and mortgage companies will take action to maintain properties that have been foreclosed upon. According to the governor’s office, those practices include regularly inspecting and maintaining properties that fall into delinquency and reporting vacant and abandoned properties to the state Department of Financial Services, which will maintain a registry of such properties. The practices are set to be adopted by August.
State Attorney General Eric Schneiderman is continuing to push his Abandoned Property Neighborhood Relief Act through the Legislature. That legislation essentially would make the provisions within the new agreements state law.
Local officials with the city have come out in support of Schneiderman’s proposal, saying it would help to address numerous properties in the area that are falling into disrepair due to a drawn out foreclosure process.
However, both senator Cathy Young and Assemblyman Andy Goodell oppose Schneiderman’s plan – saying it would eventually drive up mortgage interest rates, due to the banks having to spend more money to deal with the zombie properties.