New York City’s Real Estate Board of New York (REBNY) has unveiled a new rule to help protect homeowners who buy homes on the upswing in the city.
The rule, which is now live, requires buyers to file a foreclosure notice within 30 days of buying.
REBNY says it’s also adding a requirement for homeowners who do not file a notice to get an extension before selling.
The new rule comes as a result of the housing crisis that hit the United States, with thousands of foreclosures reported over the past year.
The Real Estate Boards of New Jersey and New York state, which are the largest in the country, also said they will be implementing similar rules.
“There is a lot of confusion around what to do when a buyer wants to foreclose on their home,” REBny president and CEO Paul Reutzel said.
“There are many things that are not fully understood.”
The new rules will require buyers to provide at least six months’ notice before filing a foreclosure.
The notice must be filed within 30 calendar days after the buyer moves into the home, and at least 90 days after they sell it.
The REB NY rule will also require sellers to notify the buyer at least 10 days in advance of any sale, and provide a copy of the notice to the buyer.
In New York, a seller can only receive a foreclosure warning if the buyer doesn’t immediately file the notice within 90 days.
“This rule ensures that the buyer gets a prompt and fair notice,” Reutsel said.
It is also important to note that the Real Estate boards will not take action on a complaint that does not have a filing date within 30 day, he added.
If you have questions about a foreclosure or are concerned about the new rules, contact the REB New York office at (800) 574-3963 or visit the agency’s website.
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