New York Senate Bill S00126

New York 2025-2026 Regular Session

• Introduced: 1/8/25
• Refer: 1/8/25
• Refer: 1/7/26

Caption

Provides for free legal representation in certain mortgage foreclosure actions where the homeowner is financially unable to obtain counsel; requires notice of such availability.

Summary

S00126 would create a right to assigned counsel for a homeowner in a private residential foreclosure action who is financially unable to obtain an attorney. It adds a new section to the Real Property Actions and Proceedings Law establishing that the court must assign counsel in qualifying foreclosure cases, with the assignment process carried out under the county law’s existing framework for providing counsel to indigent persons. The bill also updates the statutory foreclosure notice that must be served on mortgagors to inform them that they may be entitled to assigned counsel if they cannot afford representation. In addition to the new right to counsel, the bill revises the required foreclosure warning language to emphasize that homeowners should contact an attorney or legal aid, that they may remain in their home during the foreclosure process until a sale occurs, and that they remain responsible for property upkeep and taxes. It also updates the county law to include certain foreclosure actions within the scope of county-funded assigned counsel programs, alongside criminal, family court, surrogate’s court, and mental hygiene law matters.

Impact

The bill would amend the Real Property Actions and Proceedings Law and the County Law to expand access to court-appointed counsel in residential foreclosure proceedings. Counties would need to treat eligible foreclosure defendants as persons entitled to assigned counsel under article 18-B, which could require new administrative procedures and public funding for representation and related services. Homeowners facing foreclosure would gain a statutory right to counsel if they meet the financial eligibility standard, and lenders and courts would have to use updated notice language reflecting that right.

Sentiment

The available context suggests the bill is framed positively as a homeowner-protection measure, with the stated purpose of providing free legal representation to financially eligible homeowners in foreclosure. There are no recorded committee transcripts or votes in the provided material, so there is no evidence of formal opposition or support beyond the bill’s protective intent. The overall tone of the measure is consumer- and housing-stability-oriented.

Contention

The main likely point of contention is fiscal and administrative: counties would be responsible for implementing assigned counsel for a new category of civil cases, which could increase public defense costs and require additional legal services capacity. Another possible issue is policy scope, since the bill extends a right to counsel into private residential foreclosure litigation, which may raise questions about whether indigent defense resources should be expanded beyond traditional criminal and family-law matters. The bill text itself does not show recorded objections, but those are the principal areas where debate would likely arise.