City ordered loan servicer NewRez, LLC to demolish 660 4th Street, an unsafe/vacant zombie property located in South Troy neighborhood
Removal of 660 4th Street is 7th bank-funded demolition in the Collar City in 2 years, latest victory in the City’s efforts to hold irresponsible mortgage lenders responsible and improve quality of life in Troy’s neighborhoods
Mayor: Demolition removes a major blighting influence from the South Troy neighborhood, a small but important victory in ongoing battle against zombie properties and irresponsible financial lenders who own them
TROY, NY (May 31, 2022) – Mayor Patrick Madden today announced the City’s Zombie Property Enforcement Initiative has successfully prosecuted loan servicer NewRez, LLC DBA Shellpoint Mortgage Servicing – the owner of 660 4th Street, an unsafe/vacant zombie property located in the city’s South Troy neighborhood – utilizing New York State’s “Zombie Law.” NewRez LLC was ordered to demolish the property which began on Wednesday, May 25th.
This was the 7th bank-funded demolition in the Collar City in 2 years, the latest victory in the City’s efforts to hold irresponsible mortgage lenders responsible and improve quality of life in Troy’s neighborhoods.
Additionally, NewRez, LLC DBA Shellpoint Mortgage Servicing paid the city $60,000 in civil penalties for property neglect. Since 2020, the city has received a total of $509,000 in judgements and fees resulting from zombie property enforcement actions. The City of Troy was represented by Whiteman Osterman & Hanna LLP in the prosecution of NewRez, LLC.
Mayor Madden said, “The demolition of 660 4th Street removes a major blighting influence from the South Troy neighborhood, a small but important victory in the ongoing battle against zombie properties and the irresponsible financial lenders who own them. One by one, we are making a difference in the fight against blight to improve neighborhood quality of life for Troy families and taxpayers. I commend the work of Zombie Program Coordinator and enforcement officer Eric Ferraro and our legal team at Whiteman, Osterman & Hanna for bringing this case to a close.”
Deputy Mayor Chris Nolin said, “Zombie properties remain one of the biggest challenges facing municipalities like Troy. These blighted buildings ruin the character of the neighborhood, negatively impact property values, and create unsafe conditions for local families. We are proud to continue this effort to remove properties like 660 4th Street from the landscape, and I applaud the work of our Code Enforcement and Zombie Property Enforcement staff for their vital work on behalf of the City.”
A “Zombie Property” is a vacant property facing mortgage foreclosure where the bank or lender has not completed the foreclosure action. Zombie properties are left in legal limbo, with the owner led to believe by the financial institution that the owner has lost the property and the financial institution refuses to undertake responsibility for maintaining it. Zombie properties often fall into disrepair, forcing municipalities like Troy to undertake expensive remediation and enforcement efforts to address the issues and conditions of the properties.
The City of Troy’s Zombie Enforcement Initiative is funded by New York State Attorney General’s Office through the Local Initiatives Support Corporation (LISC) as part of the Zombie and Vacant Properties Remediation and Prevention Initiative and are made possible by the Cities for Responsible Investment and Strategic Enforcement (Cities RISE) program, funded by Enterprise Community Partners.
John Salka, Communications Director
[email protected] / (518) 279-7131