Finance reports progress on MRAM foreclosure list; county recognizes fees only, not sale proceeds

Laurie Skerritt, Tompkins County director of finance, updated the Budget, Capital and Personnel Committee on Jan. 9 about the county’s property‑tax foreclosure (MRAM) process and the accounting treatment of resulting funds.

Key points: Skerritt reported there are 66 properties currently in the foreclosure process; the county began with 97 on Oct. 1. As of the meeting, 35 installment agreements were in place. County staff and the county attorney discussed processes for claimants to seek return of surplus funds after a sale and noted a three‑year statute for submitting a motion to claim funds.

Revenue recognition: Finance staff said the county does not recognize full revenue from sales of foreclosed properties in its operating budget; the county recognizes fees that belong to it. The county attorney explained that some claimants seeking surplus funds submit motions to the court and that the county may receive unclaimed funds after the statutory period, which would revert to the county and could be used to reduce the levy.

Why it matters: Foreclosure proceedings and the disposition of surplus proceeds affect county accounting, levy calculations, and how revenue expectations should be presented in future budgets. Staff said the recent court ruling led the county to be conservative in recognizing potential proceeds when preparing the 2025 budget.

Next steps: Finance staff will continue to monitor installment agreements, process claimant motions as required, and develop recommended approaches to recognizing any funds that revert to the county after the claim period closes.