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Lawmakers aim to strengthen foreclosure protections in New York

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  • Staff Report 

New York state lawmakers have proposed a bill aimed at providing stronger foreclosure protections for homeowners in parts of the state who are facing displacement due to tax liens on their properties. State Senator Kevin Thomas and Assemblywoman Helene Weinstein have introduced the bill that would provide the same protections to homeowners at risk of foreclosure due to tax liens as those provided to borrowers who face residential mortgage foreclosure.

The proposed measure aims to make it more difficult to foreclose on homeowners who are struggling with steep tax burdens, leading to delinquent property taxes. Many of these homeowners are likely to be older New Yorkers who are facing financial difficulties.

The proposed bill includes limiting the interest charged on taxes that are in delinquency to 16% and creating a new “homeowner bill of rights.” It would also create new requirements for pre-foreclosure notices and require all taxing jurisdictions to adopt the changes.

The bill is based on a 2016 measure that provided new protections for homeowners facing mortgage foreclosure. The proposed measure aims to extend similar protections to homeowners facing foreclosure due to tax liens.

If passed, the proposed bill would provide much-needed relief to homeowners in New York who are facing financial difficulties and struggling to keep their homes due to tax liens. The bill would also help to prevent the displacement of longtime homeowners, which is often concentrated among communities of color and senior citizens who are already facing high foreclosure rates and are targeted by predatory lenders.

Categories: New York StateNews