NY Courts Move To Address 'Shadow' Docket Of Foreclosure Cases Created By System-Gaming Lenders That Fail To File Required Paperwork

Reuters reports:

• New York is launching a pilot program aimed at clearing the backlog of inactive residential foreclosure cases that have been stranded in legal limbo on state courts' so-called "shadow" docket.



• On March 28, the Unified Court System proposed the creation of a special calendar to identify inactive residential mortgage foreclosure actions that have been filed with county clerks, but never officially activated on the court docket. The proposal gives judges the power to schedule a settlement conference or take other action to move the cases forward.



• Under 22 NYCRR 202.12-a, lenders must file proof of service of the summons and complaint in a residential mortgage foreclosure action within 120 days of bringing the action. When they file proof of summons, they also must file a request for judicial intervention ["RJI"] and a lawyer's affirmation vouching for the accuracy of the documents. Once the paperwork is complete, courts can schedule a settlement conference.



• But lenders increasingly are filing foreclosure actions without the accompanying proof of service, attorney affirmation, or RJI, according to a letter from the court announcing the proposal. Those cases wind up on the "shadow inventory," meaning they are not on the court's formal docket and judges can't take steps to resolve the case.

For more, see New York tests solution for 'shadow' foreclosure docket.

See also, New York Post: Judge bites banks (Prods lenders, attys to unclog foreclosure cases).