BUFFALO, N.Y. -- Western New York's winter weather can wreak havoc on vacant homes in foreclosure, and starting Tuesday, it will be an expensive problem for banks as the state's new Foreclosure Relief Act takes effect.
Assemblyman Mickey Kearns says it holds mortgage lenders responsible for maintaining both the outside and inside of abandoned properties, with penalties of up to $500 a day for those who don't.
"Many of these properties, without heat, without any type of oversight, they can become a problem on the community and basically, a problem where it leads to demolition,"said Kearns.
"We expect that the participation on the banks' part is going to vary, and we really want to make sure that if there are banks that are not complying, that we can call them out and we can inform the department of Financial Services," said Kate Lockhart of the WNY Law Center.
Lockhart says it's crucial that municipalities and the public help keep an eye out for those failing to follow the new law, so they can report those that aren't cooperating.
"We are going to go after them very aggressively and let their shareholders know, their customers know that they're not being good neighbors," said Kearns.
Another change Kearns and Lockhart say is significant is the language in the notice homeowners receive when the foreclosure process starts.
"Before, it said 'You're in danger of losing your home.' Now it says, 'You have a right to remain in your home;' to let people know that they have options," said Lockhart.
Lockhart says it's better for everyone involved if the homeowners stay and maintain the property, as they own the home until a foreclosure auction takes place.
Since there are so many vacant, blighted foreclosure properties out there now, she expects some banks will just walk away from them.
"Write-off mortgages rather than comply with the new law because the largest banks are going to have to comply retroactively from December 20th."
Kearns hopes banks will be good for goodness' sake and follow the new law, because he'll be checking.
"Just like Santa Claus, I'm going to have my naughty and nice list, and if you're not complying, we will do what we have to do."