2.__Right of residence.__If the former owner or the surviving spouse if the former owner dies continues to reside on residential property acquired by foreclosure under this chapter and is making a good faith effort to repurchase the property through a payment plan arranged with the municipality, the municipality may not sell the property to a 3rd party.__A payment plan may be assumed by a surviving spouse and may be adjusted according to the surviving spouse's ability to pay.__The payment plan may include the setoff against delinquent taxes of amounts owed by the municipality to the former owner.__If the former owner or surviving spouse ceases residing on the property, the municipality may sell or otherwise dispose of the property.

3.__Right to repurchase.__At any time before sale of a property acquired under this chapter by a municipality to a 3rd party, the former owner or the former owner's surviving spouse or heirs may repurchase the property by payment of all delinquent taxes, interest and associated costs incurred by the municipality.

4.__Recovery of excess gains on sale.__If a municipality sells property acquired under this chapter to a 3rd party, the municipality shall pay to the former owner, the former owner's surviving spouse or the former owner's heirs all funds received from the sale after deducting all taxes owed; interest; costs, including costs of sale; and any other charges related to the property.__If the former owner dies and one year after the death of the former owner no surviving spouse or heirs have been identified, the municipality may keep all funds received from the sale of the property.

SUMMARY

This bill is intended to reduce the amount of residential property acquired by municipalities for nonpayment of taxes by establishing procedures for the development of payment plans both before and after residential property is acquired by a municipality if the person who is delinquent in payment of taxes or that person's surviving spouse continues to reside on the property. Municipalities are required to establish procedures for payment plans and to notify persons who are delinquent of those procedures and the availability of property tax relief programs. The municipality is permitted to set off against delinquent taxes amounts owed by the municipality to the person