Requires tax foreclosure enforcing officer to provide notice of commencement of a foreclosure action and the entry of a default foreclosure judgment to owner by first class mail and posting such notice at the affected property upon return of such notice mailed by certified mail as undelivered; provides that a default foreclosure judgment may only be taken if the owner of the property has received notice thereof or the enforcing officer a diligent effort has been unable to provide such notice; requires reconveyance of foreclosed real property within 4 months of notice of such foreclosure to the owner if the taxes, penalties and interest are paid on such property.
STATE OF NEW YORK
________________________________________________________________________
2177
2009-2010 Regular Sessions
IN ASSEMBLY
January 15, 2009
___________
Introduced by M. of A. McENENY -- read once and referred to the Commit-
tee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to the provision
of personal notice to a real property owner of the commencement of a
foreclosure proceeding and the entry of a default judgment against
such property, and requiring taxing authorities to reconvey foreclosed
property with 4 months of service of the default judgment, upon the
former owner if the taxes, interest and penalties are paid thereon
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 7 of section 1123 of the real property tax law,
2 as amended by chapter 532 of the laws of 1994, is amended to read as
3 follows:
4 7. An answer to a petition of foreclosure shall be duly verified by
5 the respondent and shall set forth in detail the nature and amount of
6 his or her interest and any defense or objections to the foreclosure of
7 the tax lien. The answer may claim any surplus received at the foreclo-
8 sure sale over the amount of money owed for taxes, interest and penal-
9 ties. Such answer shall be filed in the office of the county clerk and
10 served on the attorney for the tax district foreclosing on or before the
11 last day for redemption, as specified in the notice of petition. When-
12 ever an answer has been interposed as herein provided, either party
13 shall have an absolute right to a severance of the proceeding as to the
14 parcel or parcels to which the answer relates.
15 § 2. Section 1125 of the real property tax law is amended by adding a
16 new subdivision 1-a to read as follows:
17 1-a. In the event that the notice mailed by certified mail to any
18 owner is returned, without a signed receipt, as undelivered to the
19 enforcing officer or if the enforcing officer is unable to secure proof
20 of receipt from the United States Postal Service, such officer shall
21 mail such notice to the owner by ordinary first class mail and shall
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00806-01-9
A. 2177 2
1 affix such notice to the door of the actual dwelling place or place of
2 business of the owner within the state or, if such owner is not within
3 the state, shall affix such notice to the door of the real property
4 which is the subject of the foreclosure proceeding and if such real
5 property is undeveloped, the notice shall be posted in a conspicuous
6 location on the property. Upon the provision of notice pursuant to this
7 subdivision, the enforcing officer shall attest to such in an affidavit
8 filed in the office of the county clerk.
9 § 3. Paragraph (b) of subdivision 3 of section 1125 of the real prop-
10 erty tax law, as amended by chapter 579 of the laws of 1995, is amended
11 to read as follows:
12 (b) The failure of an intended recipient to receive any such notice
13 shall not invalidate any tax [or prevent the enforcement of the same as
14 provided by law]. Foreclosure by default may only be taken if the owner
15 has actually received the notice of foreclosure or if there has been a
16 diligent effort to provide actual notice to the owner and such efforts
17 are futile.
18 § 4. Section 1131 of the real property tax law, as amended by chapter
19 532 of the laws of 1994, is amended to read as follows:
20 § 1131. Default judgment. 1. In the event of a failure to redeem or
21 answer by any person having the right to redeem or answer, such person
22 shall forever be barred and foreclosed of all right, title, and interest
23 and equity of redemption in and to the parcel in which the person has an
24 interest and a judgment in foreclosure may be taken by default as
25 provided by subdivision three of section eleven hundred thirty-six of
26 this title. A motion to reopen any such default may not be brought later
27 than [one month] thirty-one days after [entry] service of the judgment
28 by certified mail upon the owner. If the judgment is returned as unde-
29 livered or unclaimed to the enforcement officer or if the enforcement
30 officer is unable to secure proof of receipt thereof from the United
31 States Postal Service, such judgment shall be remailed to the owner by
32 ordinary first class mail and the enforcement officer shall affix such
33 judgment to the door of the actual dwelling place or place of business
34 of the owner within the state or, if such owner is not within the state,
35 shall affix such judgment to the door of the real property which is
36 subject to foreclosure and if such real property is undeveloped, the
37 judgment shall be posted in a conspicuous location on the property.
38 2. In addition to service of the default judgment, the owner shall be
39 served by the enforcement officer with the following notice:
40 ".... (name of the tax authority)...now owns your property located
41 at:......... You have 31 days to file a motion to vacate with the court
42 listed on the default judgment if you wish to redeem your property or
43 file an answer to the foreclosure proceeding. You should contact an
44 attorney immediately if you want to contest this default judgment
45 against you."
46 § 5. The real property tax law is amended by adding a new section 1133
47 to read as follows:
48 § 1133. Reconveyance of foreclosed property. The taxing authority
49 shall reconvey the foreclosure property back to the former owner thereof
50 for full payment of all unpaid taxes, interest, and lawful costs and
51 penalties for four months after the default judgment has been served
52 upon such former owner.
53 § 6. This act shall take effect immediately.
