NY A09326

Requires tax districts to sell foreclosed properties at public auction to the highest bidder, with detailed notice and publication requirements in newspapers based on property location.

Establishes procedures for posting sale notices at least 28 days in advance in public places for properties outside cities or incorporated villages, and allows postponements with notice requirements.

Mandates that surplus money from foreclosure sales be paid to the court within five days and distributed according to established priority liens, with interested parties able to claim their share within specified timeframes.

Removes automatic bar on former owners' redemption rights and instead allows them to retain proportional interest in surplus equity remaining after property sale and payment of tax debt.

When a tax district retains foreclosed property for its own use, requires a valuation proceeding to determine fair market value and mandates the tax district pay just compensation to former owners for the difference between property value and tax debt owed.