Snow storms bring about lien sale season again, let's dive right in:
A lien sale is when the City sells debt to a private collector (known as a lien holder) who assumes the right to collect the debt, charge an additional 5% surcharge and 18% interest, and move to foreclosure if owner remains in arrears. In a lien, the lienholder assumes the debt, not property.
Property Tax Debt:
You are at risk if you own— a 1-3 unit residence, a condo/co-op, a small business with 1-2 residences, or a vacant land zoned for residential use.
[-any of the above categories with 3 years back taxes are at risk]
You are at risk if you own— a 4+ units
[-the above category with 1 year back taxes are at risk]
Property tax liens will not be sold on 1-3 family homes with the Senior Citizen Homeowner Exemption (SCHE), Disabled Homeowner Exemption (DHE), or the Real Property Circuit Breaker Personal Income Tax Credit (PIT); military personnel may also request an exemption.
You are at risk if you own— single-family and multi-family residences, as well as commercial properties, that have acquired water/sewer debt $1,000 or more for 1+ years.
Water/sewer liens will not be sold on 1-3 family homes with the Senior Citizen Homeowner Exemption (SCHE), Disabled Homeowner Exemption (DHE), or the Real Property Circuit Breaker Personal Income Tax Credit (PIT); military personnel may also request an exemption.
NYC Finance is making an effort to allow those who would be excluded from liens (SCHE, DHE) to resolve their debt through outreach sessions, data match of at-risk persons/mailings, and automated phone calls.
Stats on At-Risk Properties:
-Total Parcels CityWide- 24, 963 (Brooklyn- 11,017)
-In 2009- 4,792
-Total Liens CityWide- 53,184 (Brooklyn- 21,990)
February 2- 90-Day Mailing & Publication
March 3- 60-Day Mailing
April 2- 30-Day Mailing
April 22- 10-Day Publication
May 7- Lasy Day to Pay
May 10- 2010 Lien Sale
Finance Tax Lien Ombudsperson- (212) 504-4039
Senior Citizen’s Tax Lien Ombudsperson- (212) 504-4037
Business & Community Outreach- (212) 232-1776
*Lien sale customers with any complaints or concerns should contact the Ombuds Unit at (718) 595-6628 or firstname.lastname@example.org.
Brooklyn Outreach Session:
-April 8- Brooklyn- Finance Business Center
210 Joralemon Street, 1st Floor
-All property and water/sewer payments must be received before May 7th (any payments sent after April 28th must be sent using an official bank check or money order sent to “NYC Department of Finance”).
-(Water)- Checks and money orders (with acct #) to “NYC Water Board, P.O. Box 410, Church Street Station, NY, NY, 10008”
Brooklyn Borough Office- 250 Livingston Street, 8th Floor
(between Hoyt and Bond Streets)
-Others who are at risk may pay through installment agreements; those eligible must make 5-20% initial down payment on delinquent balance (plus installment payments). Must see Finance Department for eligibility.
-May also pay online or in person at any Business Center.
-DEP has developed a Safety Net Referral Program, managed through the Ombuds Unit. Seniors, low-income customers, and those affected by the national mortgage and foreclosure crisis will be will be referred to other agencies in collaboration with this program.
Please give us a call at (212) 788-7081 if you have any further questions.