§ 1138. Withdrawal of parcels from foreclosure. 1. Grounds. The\nenforcing officer of any tax district may at any time prior to final\njudgment withdraw any parcel of real property from a foreclosure\nproceeding under this title for one or more of the following reasons:\n (a) there is reason to believe that there may be a legal impediment to\nthe enforcement of the tax lien affecting such parcel;\n (b) the tax has been cancelled or is subject to cancellation pursuant\nto section five hundred fifty-eight of this chapter, or, in the case of\na tax district to which such section does not apply, the tax would be\nsubject to cancellation if such section were applicable to the tax\ndistrict;\n (c) the enforcement of the lien has been stayed by the filing of a\npetition pursuant to the Bankruptcy Code of 1978 (Title Eleven of the\nUnited States Code);\n (d) if the tax district were to acquire the parcel, there is a\nsignificant risk that it might be exposed to a liability substantially\nin excess of the amount that could be recovered by enforcing the tax\nlien;\n (e) the owner of the parcel has entered into an agreement to pay the\ntaxes in installments pursuant to section eleven hundred eighty-four of\nthis article, and has not defaulted thereon;\n (f) in a tax district which has extended the redemption period for\nresidential or farm property, (i) the parcel has been included on a\npetition for foreclosure, (ii) it has since been demonstrated to the\nsatisfaction of the enforcing officer that the parcel is residential or\nfarm property, and (iii) being residential or farm property, the parcel\nis not yet subject to inclusion on such a petition;\n (g) in a tax district which has extended the redemption period for\nresidential property for certain persons deployed by the military (i)\nthe parcel has been included on a petition for foreclosure, (ii) has\nbeen demonstrated to the satisfaction of the enforcing officer that the\nparcel is residential, (iii) the property is eligible for the extended\nredemption period pursuant to section eleven hundred thirteen of this\narticle, and as such is not yet subject to inclusion of such a petition;\nor\n (h) the tax lien has been or is to be sold pursuant to title five of\nthis article.\n 2. Procedure. (a) Upon the withdrawal from foreclosure of any parcel\nof real property, the enforcing officer shall issue a certificate of\nwithdrawal, setting forth the facts which render the parcel eligible for\nwithdrawal from foreclosure. The certificate shall be filed with the\nclerk of the governing body of the tax district.\n (b) If the parcel has been included on a list of delinquent taxes that\nhas been filed pursuant to section eleven hundred twenty-two of this\ntitle, the enforcing officer shall file a copy of the certificate of\nwithdrawal with the county clerk within ten business days from the\nissuance of the certificate. The county clerk shall note the word\n"withdrawn" and the date of such filing opposite the description of such\nparcel on the list.\n 3. Effect. The filing of such a certificate shall have the effect of\nwithdrawing the affected parcel from foreclosure; provided, that (a) the\nfiling shall have no effect upon the tax lien or liens against the\naffected parcel, nor, if the parcel has been included on a list of\ndelinquent taxes that has been filed pursuant to section eleven hundred\ntwenty-two of this article, upon the notice of pendency with respect to\nany such parcel, unless the lien should be cancelled pursuant to\nsubdivision six of this section or such other law as may be applicable;\nand (b) if the lien is not cancelled, the foreclosure proceeding may be\nreinstated in the manner provided in subdivision four of this section,\nor a supplementary proceeding to enforce collection of the delinquent\ntax may be commenced in the manner provided in subdivision five of this\nsection.\n 4. Reinstatement. (a) The enforcing officer shall reinstate a\nwithdrawn foreclosure
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