After Foreclosing Homes, New York Towns Have to Pay Residents Back
New York municipalities used to keep the surplus from foreclosed homes sold at auction. Then the Supreme Court ruled it unconstitutional.
![Window looking into a darkened foreclosed home. A yellow sign says "LENDER FORECLOSURE" and "PUBLIC HOME AUCTION." Smaller paper signs say "Warning No Trespassing" and note a lawn maintenance company.](https://imgproxy.gridwork.co/pait_eys9lDiEqx3FBFxglq-iotc8JLFRMXe3aGhQpQ/w:820/h:532/rt:fill/g:fp:0.478:0.2629/q:90/f:jpg/el:1/aHR0cHM6Ly9zMy51cy1lYXN0LTIuYW1hem9uYXdzLmNvbS9ueXNmb2N1cy9mb3JlY2xvc3VyZS5qcGc.jpg)
“They wouldn’t be able to eat or go to the doctor if they used their Social Security income to pay their taxes.”
“We deal with a lot of formerly redlined neighborhoods and we see a lot of minority homeowners who are losing equity when they get foreclosed on.”
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