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Preventing foreclosure

Foreclosures increased in Dutchess County by 17.6 percent in 2012 from 2011. Of these 1,096 foreclosed properties, 154 came into county control and the county Legislature voted to place them up for public auction in an attempt to recoup unpaid taxes. By Real Property Tax Law the county acquired these properties through the in rem procedure for delinquency in paying property taxes. The occasion gave the Legislature one of several opportunities in recent months to discuss the poor economy and its effect on the housing market.A second opportunity came via a resolution that the town of Stanford passed. Stanford’s Town Board asked the county Legislature for permission to structure the payment of town and county taxes by installment for the ease and convenience of its residents. By present practice residents must pay their entire municipal taxes on Feb. 28, or face penalties. Taxpayers are not permitted to pay partial payments. State law allows first-class towns (determined by population and assessed valuation) to modify the payment schedule and to accept partial payments for which Hyde Park, Wappinger and the town of Poughkeepsie presently allow. In some cases taxpayers have until August to pay their government taxes, although interest charges apply.Stanford, which by designation is a second-class town, is dependent upon the will of the county Legislature to give its citizens the ability to make partial payments. Through a series of town meetings I attended in 2012, the Stanford Town Board voiced concerns that rising taxes were making it difficult for town residents to make timely tax payments (something for which the increased foreclosure rate evidences). Even though residents who choose to make partial payments would be subject to higher interest rates, the town asked the county to give them the right to collect partial payments.However, by state law, if the county acts it must adopt a whole new payment collection schedule that would be binding on all towns of the county, not just town specific. Before mandating this I spoke at the October Supervisors and Mayors Association to solicit feedback from local elected leadership. The response was mixed, with good reasons voiced on both sides. The outcome of the meeting was for local town officials to monitor the frequency of individual taxpayers who experience hardships with paying taxes in the coming tax season. At the same time the Legislature would seek state permission via a home rule request to allow second-class towns the ability to self-determine installment plans as presently enjoyed by first-class towns.Beyond these efforts, many banks currently offer federal assistance programs to struggling property owners to prevent foreclosure. Those facing hardships should ask their mortgage lender about Home Assistance Modification Programs (HAMP). Through a variety of federal programs borrowers may be able to lower their monthly payments and/or reduce interest rates. Go to www.MakingHomeAffordable.gov for details.Michael Kelsey represents the people of Amenia, Washington, Stanford, Pleasant Valley and Millbrook in the Dutchess County Legislature. Write him at KelseyESQ@yahoo.com. Read past blogs at blog.VoteMikeKelsey.com.

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