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November 20, 2008
Subject: Residential
Foreclosure Program, 2nd Circuit Update & ECF System Down
Mortgage foreclosure
filings have reached record levels in the New York State court. There has been a 150%
increase in foreclosure filings statewide from January 2005 through April
2008. Legislative reforms, as well as changes to national and state banking
policies and regulations, are under consideration. Meanwhile the court
system has taken steps to promote better outcomes for homeowners and
lenders alike.
Chief Judge Judith S.
Kaye, in response to record level foreclosure filings, has created a new
court program to reduce the time, expense and potential losses involved in
home foreclosures. The Residential Foreclosure Program will establish an
early, active court presence in foreclosure cases involving owner-occupied
residences to promote greater efficiency in case resolution and better
outcomes for both homeowners and lenders.
Statistics show that
defaults occur in about 90% of foreclosure cases. Defaults may be the
result of the homeowner’s lack of knowledge or understanding of the legal
process, or the inability to afford or access help from available legal or
counseling services. Some of these instances represent missed opportunities
to avoid foreclosure or reach an agreement with the lender that could
benefit both sides.
Parties familiar with
the banking community have indicated that a conference under court auspices
early in the foreclosure litigation could be beneficial to both lenders and
homeowners. We have listed a few items our clients should keep in mind if
they file an action dealing with this issue.
When serving the initial
papers, a notice has to be included that describes the new court program.
The court is required to
send the defendant a second notice upon the filing of a special foreclosure
RJI at the time that proof of service on the defendant is filed with the
county clerk. The courts’ notice will inform homeowners and lenders that an
early conference is available to be held within 60 days.
A new RJI
form will be used. <<details>>
The courts computer
system is being modified to accommodate this procedure.
As with any new
procedure within the court there will be challenges trying to work it into
an existing system. The court is in the process of trying to work these
out. Some of the concerns are:
There is no requirement
any more to file a proof of service. So the date of proof of service cannot
be ascertained
There will probably be a
separate series of Index numbers, not yet defined.
The address of the
defendant is not recorded on the computer system used by Trial Support.
Trial Support does not see the complaint so it will not have a way to
notify the defendant.
Please review the below
hyperlinks for more information:
http://www.nycourts.gov/press/pr2008_4.shtml
http://www.nycourts.gov/whatsnew/pdf/ResidentialForeclosure6-08.pdf
http://www.nycourts.gov/attorneys/foreclosures.shtml
We
would like to thank the following court personal for spending time with our
office to assist us with this tip:
Stan Drosky,
Cliff Fuller - Office of Court Administration (Troy NY)
Anthony D'Angelis (Chief Clerk), Maureen D'Aquila
- Queens County. Queens county was the pilot site for this procedure.
Gloria Smyth-Godinger - NY County Trial Support.
Paul Lewis & Angela Badamo - Office of Court Administration (Beaver Street)
Since the New York State database will be changing to
accommodate this new program into it's system, CourtAlert will of course
modify it's New York State case snap web display. This new
modification should happen in early December along with the new alerts from
this program. According to what we have been told, no other vendor has
taken any interest in understanding this new program which places our
clients once again at the forefront of what is going on in the court.
2nd Circuit Update
Notice
to the Bar - On Monday, November 24, 2008 and Tuesday, November 25, 2008,
the Court of Appeals for the Second Circuit will hear oral argument in New
Haven, Connecticut at the following locations: Courtroom#1, 141 Church
Street, New Haven, CT (November 24th only) and Yale University Law School,
127 Wall Street, New Haven, CT (November 25th only). Directions to Yale University Law School are available at www.law.yale.edu.
Oral argument will not be held in New York City on these days.
ECF System
Maintenance (SDNY)
ECF Service Interruption Notice:
Friday, November 21,
2008, from
7:00 AM to 8:00 AM
Please be advised that
the District Court's Electronic Case Filing (ECF) system will be out of
service during the time period described above for routine maintenance.
The ECF HELP DESK is
available at (212)805-0800, Monday through Friday, from 8:30 AM to 7:00 PM.
We are Committed to Remain the Best!
Thank You,
Izzy Schiller, President
CourtAlert
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