Syracuse Land Bank | What Is It's Purpose & Why Do They Acquire Tax Delinquent Properties
So what is the Syracuse Land Bank?
The Syracuse Land Bank is not a financial institution. It is a city owned and operated entity, created to acquire, manage, maintain and repurpose abandoned, vacant and tax delinquent properties.
With a large number of these properties throughout our communities, the Syracuse Land Banks intent is to revitalize our neighborhoods by acquiring these properties and selling them off to well qualified re-developers.
These abandoned, vacant and tax delinquent homes can become an eye sore for any community and reduce the prices of homes being sold in the area.
The Syracuse Land Bank is a way for the city to recoup tax funds that they deserve from lack of payment. Since the city gains control of these properties, there intent is to sell these properties for a profit or what is owed on their taxes.
This entity is used as an alternative to tax foreclosure, the selling off of tax liens and property disposition. Land Banks are meant to replace these "liquidated" systems, generally based on the sale of tax liens to investors and tax auctions.
The issue with tax liens and auctions is that the investors that acquire this property through paper, rarely treat this property as real estate and use as reinvestment purposes.
The Syracuse Land Bank connects the acquiring of tax foreclosures with the management and systems of a redevelopment strategy for neighborhoods and surrounding communities.
Syracuse Land Bank Initiatives
When implementing a land bank in a specific location, the city has initiatives in mind and goals that this entity will produce. Here are some of the initiatives for a successful land bank to consider.
1) Connecting the Syracuse Land Bank with the tax collection & foreclosure system
Tax collection and abandoned/ vacant properties seem to have a direct correlation. Even though this is not always the case, typically vacant/abandoned properties fail to have their taxes paid. However sometimes, actual homeowners find themselves in situations where they are unable to pay there taxes and become delinquent. The land bank's main goal is to connect the economics of tax collection with the management and sale of these tax delinquent properties. The Syracuse Land Bank captures the revenue stream of late taxes and interest and utilizes the financial resources to manage and dispose of the properties held by the land bank. Each property is given a distinct scope of work prior to the sale, forcing the purchaser to make the necessary repairs to put the property in good standing condition. In both the tax lien situation and the land bank situation, the homeowner will lose their property. The problem with this is that, this is treated as a foreclosure and the homeowner will take a severe credit hit, if the property is acquired by the land bank.
2) Be transparent in their policies
The public is always suspicious of any government role within the real estate market, and for good reason. The role of a land bank should be to be very transparent with all parties involved, educating everyone on the process and what it entails between the acquisition and the resale of the property. Many homeowners’ are weary of the land bank because typically they strong arm the homeowner into a position where they have no other option but the give the property back to the city. This does not sit well with the public and the homeowner's who may be delinquent, since they see this as the city forcing them out of their homes and profiting on their loss. The terms and pricing policy must be uniform throughout the whole process.
3) Creating engagement among neighborhoods and communities
Since the Syracuse Land Bank's inception they have acquired and sold several properties. This means that they have become a part of several different communities and neighborhoods. The goal of the land bank should be to engage their neighbors on the policies and practices, to assist in the redevelopment of their neighborhoods. A formal process needs to be created, so that all of the neighbors have a voice in determining the action for the properties they acquire within their communities. The Syracuse Land Bank should seek public input in terms that make that input more meaningful than if the input comes in the form of frustration with the land decisions. There is a fine line that the land bank should follow when it comes with neighborhoods and communities.
Wrapping Up | Syracuse Land Bank
The Syracuse Land Bank does have good intentions to redevelop some of our neighborhoods within our communities. It is a difficult task because the property that you are acquiring will be the downfall of a homeowner. Once the property is acquired by the land bank, the homeowner will be tagged with a traditional foreclosure if the property is acquired for delinquent tax purposes. Many homeowner's who find themselves in this situation, do not believe there are any other options besides turning the property over to the city and taking the severe credit hit.
We want you to know that there are options for homeowners who find themselves in this situation. The best thing for any homeowner to do, if they know they are falling behind on their taxes is to get in touch with the city immediately. They will allow you to put together a partial payment schedule and catch up on your delinquent taxes. If you do procrastinate, there are still options for you so you do not take the severe credit hit and go through foreclosure.
We offer a service where we purchase properties in cash which allows us to close on properties in a very short period of time. By purchasing your property for more than what you owe on your taxes, you will not have to make any tax payments, will not have to go through foreclosure and you will still possibly make a profit on the deal depending on the specific situation. If you have found yourself in this situation, you can start the simple selling process below.
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