City staff told the Schenectady City Council that several foreclosure proceedings are active and that, if completed, the sales could produce revenue in 2026 but timing is uncertain because of legal steps and past moratoria.

Finance and law staff described a mix of cases: one matter already has a default judgment and is awaiting the summary-judgment and post-judgment steps; another filing is in earlier stages and requires title work and the statutory redemption period. Staff said residential foreclosures follow a three-year statutory timeline while commercial matters may follow a two-year timeline, and noted that pandemic-era moratoria and state law changes have slowed earlier cases.

Staff emphasized that some properties now have more market equity than they did during the moratorium years and that many owners pay taxes during redemption to retain property. As a result, staff cautioned, sale revenue in 2026 may be lower or more uncertain than previously projected. Council members asked staff to follow up with updates on which cases are likely to close and when, so the council can calibrate budget expectations.

Why this matters: the city's estimate for sales and foreclosure-related revenue is material to the budget; the number and timing of completed foreclosures affects the near-term general fund outlook and capital receipts assumptions.