More questions than answers for Clinton Co. foreclosure process
Oct. 14—PLATTSBURGH — Clinton County has begun its foreclosure process for next year without a clear path forward from the state on how to distribute the excess funds generated from this year's auction.
County Treasurer Kimberly Davis says her office is still trying to get answers on how to navigate the Supreme Court decision in a Minnesota case earlier this year that ruled in favor of a 94-year-old woman who had her property seized for owing about $15,000 in real estate taxes, interest and penalties, and sued when her county sold her property and made an excess $25,000 off of it at the foreclosure auction.
Since that ruling on May 25, Clinton County has kept the excess funds, made from their foreclosure auction June 7, in escrow awaiting guidance on how to distribute them.
Davis said a few people have called her office about potentially receiving the money and she's had to explain this situation to them.
"There's just so many things that are up in the air," she told the county legislature at their finance meeting Oct. 4.
"I have not heard of any plans of the leaders of the legislature meeting with NYSAC (New York State Association of Counties) or the treasurer's association — the people doing the job — to ask 'Hey, what are your concerns?'"
"Everybody wants the answer. There is no answer yet," County Administrator and former NYSAC President Michael Zurlo said.
Davis said she could list about 20 other concerns that have yet to be addressed since the ruling. Her "biggest concern" being whether or not taxpayers will have to make up for any losses the county incurs from their foreclosure auctions moving forward.
For example, in June's auction, the county incurred a loss of about $27,000, Davis said at the time. Had that auction been held before the ruling, the county would have generated a surplus of about $1.3 million.
"Are the rest of the taxpayers going to have to make up for that?" she asked rhetorically, "As well as any demo[litions] that individual towns are doing?"
County Legislator Dave Bezio (D-Area 4) asked if the county could get reimbursed for the foreclosure process costs.
"So it was left very vague, what passed the Senate and the Assembly. In Clinton County, we've got three tax collectors who do the foreclosure process. Do we take all their salaries because they don't all 100% of the time do foreclosure?" she said.
"...That is one of the many questions that is not being addressed. It just says administrative expenses. Well what does that mean?"
If no legislation has been passed and no decisions have been made by next year's foreclosure auction, the county will still be allowed to foreclose just not sell, Davis said. If they do pass some type of legislation, the auction might get pushed back a few months from when they usually hold it in June.
"If there's a delay, the properties are going to be, in theory, worth less so there's going to be less to give back to the homeowner, because there's going to be less excess," Zurlo added.
"So my point is they need to come up with a solution so we at least know what to do."
Email: cnewton@pressrepublican.com
Twitter: CarlySNewton
