Posted on 03/29/2024 5:07:18 PM PDT by ChicagoConservative27
New York City officials are forecasting overdue property taxes will surge to a record $880 million in the current fiscal year — and they say it’s because they’ve lost the power to enforce punishments for delinquencies.
The staggering figure — forecast for the fiscal year ending in June — marks a jump of more than 30% from three years ago, according to an offering document for a city general obligation bond sale Tuesday obtained by Bloomberg.
“It’s not just the absolute dollar amount that I think should worry us all,” Preston Niblack, the city’s finance commissioner, said at a City Council finance committee meeting earlier this month.
(Excerpt) Read more at nypost.com ...
I thought counties enforced property tax payments. They can even foreclose and sell the property for unpaid taxes. Some investors buy these properties and flip them.
I could be wrong about thhis state. Not sure.
It will be in the trillions when all is said and done.
Banks and investors don’t want to realize the loses on CRE properties.
It has to be massive.
Not to worry. BlackRock will step in and buy them for pennies on the dollar.
The city would bundle its most marketable liens into securities for sale at a discount to a third-party trust, which borrows money from investors to pay the city upfront, according to Bloomberg. The trust then assumes responsibility for collecting the debt, plus additional fees and interest payments, so that after investors are paid back, the city can continue collecting additional revenue from those added costs. New York Attorney General Letitia James criticized those fees back in December 2020 for having the ability to “quickly turn a relatively small tax lien into an overwhelming financial burden, eventually pushing homeowners into foreclosure.” She cited the mandatory 5% surcharge, legal fees, and a 9% or 18% interest rate that compounds daily, according to Bloomberg
Gee, did the City follow all the regulations and disclosures for securities sales? Paging AG James……
if no one is buying then no one is flipping. one of my friends moved way out of town and told me there are lots in his area that have been at tax auction for years but no one is buying even the tax liens. location is everything in real estate.
New York Attorney General Letitia James criticized those fees back in December 2020 for having the ability to “quickly turn a relatively small tax lien into an overwhelming financial burden, eventually pushing homeowners into foreclosure.”
She cited the mandatory 5% surcharge, legal fees, and a 9% or 18% interest rate that compounds daily, according to Bloomberg.
I would wager that they already have, or soon will, jack Trump’s property taxes up.
And furthermore, if he didn’t pay his taxes we know darn well they would foreclose the second it became legal.
Selective prosecution is a violation of the constitution but the agencies responsible for enforcing laws and constructional protections are the same people violating them.
CRE=Commercial Real Estate
City officials have blamed the rise in unpaid property taxes on the end of a tax-lien sales program that punished delinquency during the pandemic, according to Bloomberg.
The program expired in March 2022 and wasn’t reauthorized by the City Council,
who cause the problem?
was a guy here had ~15 properties that were always all delinquent, he’d put the tax money into cd’s and wait till they were going to go up for auction and then pay them off
they finally shortened the grace period and put a stop to it
I THINK it was Detroit that literally bulldozed the houses off thousands of lots in areas of town that had become so crime ridden nobody would live there.
When that happened, no rent or mortgage payments were happening. When that happened foreclosure came. Now, the City found itself owning property that NO ONE on earth wanted. Then, and only then, did it dawn on the Democrats that CRIME policy mattered. NYC is up to the plate next!
And then President Trump will fix the disaster, the USA becomes dependable and prosperous again and Blackrock makes a killing in real estate. Wouldn't that be ironic.
Sounds more like a plan to me.
Trump can’t fix what’s coming.
Trump can’t fix what’s coming.
If every illegal isn’t booted, it won’t be fixed.
Demographics is destiny.
That's basically just inflation. In real terms, there's been hardly any increase. Click bait article.
I can’t speak for New York, however, in Connecticut, each individual town or city handles it, as Connecticut doesn’t technically have a county form of government.
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