Troy, Albany and Schenectady sue mortgage firms over destroyed buildings

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TROY. The three largest cities in the metropolitan area have launched a series of coordinated lawsuits against two affiliated financial companies for failing to maintain zombie property.

Lawsuits against Ocwen Financial Corp. and its subsidiary PHH Mortgage are part of efforts to contain the spread of the disease in the Albany, Schenectady and Troy areas.

Troy Mayor Patrick Madden, Albany Mayor Katie Sheehan and Schenectady Mayor Gary McCarthy will detail their cities’ legal actions on Wednesday.

Officials in the three cities argued that Ocwen Financial Corporation and PHH mortgages are among the metropolitan area’s largest zombie-property mortgage services, homes that have been abandoned after owners abandoned the mortgage.

Ocwen Financial Corporation is listed on the New York Stock Exchange. The company positions itself as one of the largest non-bank mortgage services in the United States.

Officials said the two entities are responsible for 18 properties with 502 building code violations. They hope lawsuits under state zombie property law will force companies to repair the property they own through foreclosure and speed up the pace of foreclosures.


House 22 115th According to a lawsuit filed by Troy with the Rensselaer County Clerk’s Office, the street is one of the properties. City officials pointed to 57 violations of the code, including an alleged failure to maintain property, structural damage and debris, court documents said.

“The zombie law also gives municipalities the opportunity to sue mortgage employees for $ 500 a day for breaking the code (because) there is a violation of the code,” Madden’s office said.

Troy sued for lack of service 22 115th 793 Fifth Avenue, 1011 Ninth Avenue, 125 Adams Street and 425A Tenth Street, according to filings with the county clerk’s office. Albany has sued over 30 Benson Street, 50 South Boulevard, 87 Kent Street, 119 Third Avenue and 315 Delaware Avenue, according to documents from the Albany County clerk’s office. Schenectady’s suits were not immediately available.

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