Wednesday, May 25, 2016

TOWN OF HEMPSTEAD AND ZOMBIE HOME UPKEEP BILL



As reported by numerous sources, Town Board members of the Town of Hempstead on Tuesday voted unanimously on a measure requiring banks and lenders to post a $25,000 security deposit each time a home in the Town of Hempstead goes into foreclosure.

A copy of the bill that was proposed (May 24, 2016) can be found on the Town's website: https://toh.li/files/tbdocuments/20160524-resolutions.pdf

However - it appears to be limited to foreclosure actions that are commenced against homes that are already vacant. Although there are no studies that I am aware of, it appears to me, in my experience, that most homeowners abandon their homes well after the foreclosure process has been in process, not before. Thus, the method of rolling upkeep costs to the foreclosed homeowner’s property taxes years later may probably continue to be the main upkeep approach with new foreclosures.

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