Non-Judicial Commercial Foreclosures Approved in New York State Courts

Experimental Law Will Speed Commercial Foreclosures

New York State Governor George Pataki has signed a new law which will allow mortgage lenders to conduct uncontested commercial foreclosures out of court. The new law is limited to uncontested foreclosures on commercial property and may not be used in cases where it would have the effect of allowing the eviction of any residential tenant. The law, contained in RPAPL article 14, will be in effect as an experimental measure until July 1, 2002, unless renewed by that date.

The provisions of the law provide that the lender must serve notice of its intention to foreclose on the borrower and then serve a notice of sale on all interested parties at least 30 days before the sale, unless a defense is raised and the action is converted to a contested foreclosure.

The new law, which was proposed by the New York State Bar Association's Real Property Section is intended to ease congestion in the courts and encourage lenders to invest in New York by giving them a faster and less costly means to recover on defaulted loans.

Attorneys are predicting that the law could mean that the non-judicial foreclosures could take only four to six months to complete, as opposed to the one to two years currently required.

Cohn & Roth Expands Staff

As part of its ongoing continuing commitment to better serve its clients, Cohn & Roth has added an additional attorney and support staff to its New York offices.

In June, Nancy E. Susca joined the legal staff at Cohn & Roth. Nancy has been a practicing attorney for ten years, and has been doing foreclosure and bankruptcy work for as long.

Formerly with Shapiro & Kreisman as managing attorney of their Long Island office in Melville, New York, Nancy has had extensive experience with lenders on a national level and is familiar with all aspects of foreclosures.

Nancy has a special interest in acting as a "resolutionary", having a well established rapport with members of the judiciary at all levels and with her fellow members of the bar and litigants, whether or not represented by counsel. Nancy prides herself on her ability to deal with people on all levels in what is more often than not a stressful situation where time is a key factor for the lender. Her ability to grasp the situation and the most effective positive solution has proven to be an asset with the courts, lenders and defendants in the foreclosure process.

Nancy is a graduate of Manhattanville College and the Fordham University School of Law. In addition, she is a member of the Suffolk County Bar Association and on its Professional Ethics Committee, as well as the Real Estate

Banking Committee , the Real Property Committee and Women and the Bar.

Support Staff Expanded As Well

In addition to adding to its professional staff of attorneys, the firm has also recently hired a number of additional paralegal and support staff, so as to better and more efficiently serve its clients.

Cohn & Roth Adds LenStar In response to requests from several clients, Cohn & Roth in June, signed an agreement with Lentec to become a member of the growing network of attorneys using the LenStar Default Administration Program.

If your firm uses the LenStar System, please contact us so that we can arrange to be online with your servicing system as soon as possible.

If you are using another system, or are contemplating doing so, please contact us so that we, too, can arrange to bring our facilities into full compliance with your servicing system.