NY S07940

Requires tax districts to conduct public sales of foreclosed properties with newspaper publication for 3-4 weeks and posting notice at least 28 days before the sale date

Establishes a formal process for surplus funds distribution, requiring the officer conducting the sale to pay surplus moneys into court within 5 days and file a report within 30 days of completing the sale

Creates a claims process allowing former property owners and lien holders to file written notice of claims on surplus funds before the sale report is confirmed, with court hearings to determine distribution priority

Requires tax districts that keep foreclosed property for their own use to commence eminent domain valuation proceedings and pay just compensation to former owners representing the difference between the property's fair market value and the total tax debt owed

Changes the redemption order for multiple tax liens on a single parcel from reverse chronological order to chronological order, requiring the earliest lien to be redeemed first