New York may implement a one-year moratorium on foreclosures brought on by unpaid taxes as a result of a U.S. ruling of the Supreme Court.

Foreclosure Property (Source: FingerLakes1)

A Change in Property Foreclosure Laws

According to the news reported by FingerLakes1, this week, state legislators in New York gave their final approval to a bill that would halt the majority of “in rem” foreclosures in the state until June 30, 2024. It will now be sent to Governor Kathy Hochul’s desk for her review.

When a property owner is behind on their taxes and doesn’t make a payment by the deadline for redemption, tax foreclosures may take place in New York. Municipal governments therefore have two options: they can start a foreclosure process on the home and sell it at auction or they can have a tax lien sale and sell the liens to a buyer outside the community.

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Amendment of Foreclosure Properties

However, several provisions of New York’s foreclosure laws are incompatible with a Supreme Court decision. Accordingly, lawmakers and decision-makers need time to explore strategies for amending the current law, according to state Senator Kevin Thomas.

Additionally, the congressman wants to make it simpler for homeowners who owe back taxes to keep their homes.

He asserted that the practice contributes to the displacement of long-time homeowners, which is often concentrated among communities of color and seniors who are already experiencing high rates of foreclosure and are targets of predatory lenders.

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