[HISTORY: Adopted by the Suffolk County Legislature 6-14-1983 by L.L. No. 11-1983 (Ch. 359 of the 1985 Code). Amendments noted where applicable. Uncodified sections of local laws amending these provisions are included at the end of this chapter.]
Consumer protection — See Ch. 387.
The dramatic increase in the use of creative and innovative financing in the real estate market, together with the expansion and development of secondary and tertiary markets for mortgage instruments, has created a situation in which mortgagors have not been notified of the fact that their mortgages have been purchased by someone other than the mortgagee from whom the mortgagor obtained financing. This has resulted in allegations of nonpayment even though the mortgagor has continued to forward a monthly mortgage payment to the original mortgagee. The purpose of this chapter is to eliminate the confusion which has arisen out of these complex business transactions.
The purchaser, assignee or transferee of any mortgage held on real estate located in the County of Suffolk shall notify the mortgagor of said purchase, assignment or transfer, in writing, within 30 days of said transaction and shall provide said mortgagor with an address to which future interest, principal and escrow payments shall be made.
If the purchaser, assignee or transferee fails to comply with § 595-2 of this chapter, said failure may be raised by the mortgagor as a defense to bar an action in foreclosure by said purchaser, assignee or transferee for nonpayment of said mortgage.