NY A04455

Foreclosure proceedings for non-payment must be stayed when a mortgagor has applied for coverage under the New York State Homeowner Assistance Fund or local programs administering federal emergency mortgage assistance funds, until eligibility is determined

The stay applies to both new and pending foreclosure cases, including those filed before the act's effective date

Payments received through assistance programs create a legal presumption that the mortgagor's obligation for the covered time period has been fully satisfied

The stay protections do not apply if the mortgagor intentionally caused significant damage to the property, but the petitioner must file a sworn affidavit with specific descriptions of the alleged damage

Mere allegations of property damage by the petitioner or their agent are insufficient to establish intentional damage; if the petitioner fails to prove such damage, the stay remains in effect or the case is dismissed with prejudice if arrears have been paid