SB 408 Summary

• Reduces the interest rate on delinquent property taxes from 18% to 8% per annum, effective from passage.

• Modifies tax sale redemption procedures to allow redemption within 60 days of sale (or as established by municipal ordinance for abandoned properties) at an 8% interest rate on the purchase price, effective from passage.

• Expands the Emergency Mortgage Assistance Program to include lien debt assistance for unpaid taxes and sewer liens exceeding $5,000, effective July 1, 2016.

• Requires tax lien assignees to evaluate homeowners' ability to repay over at least 24 months before foreclosing, provide payoff statements, and limit attorney's fees to $1,500 for uncontested cases, effective July 1, 2016.

• Extends emergency assistance eligibility to homeowners with delinquent lien debt and establishes notification requirements for mortgagees and lienholders when applications are received, effective July 1, 2016.