December 12, 2025

On December 3, 2025, a New York lawmaker introduced Senate Bill S8595, (the “Bill”) which proposes amendments to Sections 1321 and 1351-a of the Real Property Actions and Proceedings Law. The Bill directs how court-appointed referees calculate amounts due in foreclosure actions and seeks to standardize valuation and computation practices. According to the Sponsor’s Memo accompanying the Bill, this piece of legislation aims to ensure transparent processes by referees in foreclosure proceedings.

Upon closer inspection, the Bill instructs referees to itemize each component of the amount due using a form prescribed by the Chief Administrative Judge. Required entries include unpaid principal, interest with specified date ranges, escrow and property-preservation advances, contractual fees, and court-approved costs and disbursements. Each entry must also rely on documentation admissible as evidence, and any dispute regarding sufficiency of proof must go before the court for resolution. The Bill also establishes a valuation-date standard for surplus and deficiency determinations by directing use of the auction date unless a court orders otherwise for good cause on application of a party. Finally, the Bill is intended to take effect ninety (90) days after it becomes law.