New York City's Annual Lien Sale

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New York City's Annual Lien Sale

General Information on the City's Lien Sale Process
Avoiding Predatory Lenders
Contact Information
Forms and Publications
Frequently Asked Questions
Lien Sale List Archive 2008/2009

The 2009 LIEN SALE WAS ON MAY 1, 2009.

General Information on the City's Lien Sale Process
A lien is a legal claim against real property for unpaid property taxes, water, sewer or other property charges, as well as the interest due on these taxes and charges. When outstanding amounts have been delinquent for a legally specified period of time, and the City has mailed notice to the property owner, the City is allowed to sell the lien(s) to an authorized third party, who becomes the "lienholder". The new lienholder then has the authority to collect the money that was previously owed to the City of New York, plus other fees and interest.

When the City sells a lien, it is not selling the property. The lienholder does not take title to the property. The lienholder purchases the right to collect the money that was owed to the City. Ultimately, however, if the property owner does not pay what is owed, the lienholder can begin a formal foreclosure proceeding in court.

Avoiding Predatory Lenders
When the 90-day Lien Sale Notice is published, homeowners on the list often receive unsolicited loan offers. Some of the lenders are honest, reputable banks and financial institutions. Others, however, are not.

Dishonest or unscrupulous lenders know that a homeowner on the lien sale list owes the City money. These lenders may try to take advantage of your financial situation, which can put your property ownership in jeopardy. Be sure to research all lenders, seek guidance from independent sources, and be careful. Don’t risk losing your home to a predatory lender if you cannot pay back the money you borrow.

Say "NO!" to...

Loans with monthly payments you cannot afford to make.
Loans with excessively high fees and interest rates.
Aggressive sales pitches that hide the true cost of the loan.
Hard-sell tactics by telemarketers or door-to-door salespeople.
Any documents with blank spaces.

What you should do:

Contact the Department of Finance or Environmental Protection about paying what you owe in installments, if necessary. Find out exactly how much you will have to pay up front and during each installment period.
If you are having difficulty with your mortgage payments, need legal advice from a reputable attorney, or are interested in hearing about available loan products or other benefits, please contact 311 and ask for mortgage assistance. You will be referred to qualified staff who will help identify your issues and provide appropriate assistance.
Document everything in writing, and read every word.
Make sure that you can afford to pay back the monthly payments on the money you borrow.

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Contact Information

For Property Taxes
In Person:	NYC Department of Finance Tax Lien Ombudsperson 66 John St., 2nd Floor, NYC 10038
Phone: Online:	212-504-4039 nyc.gov/finance
Special Assistance for Senior Citizens
In Person:	Senior Citizens/Disabled Owners Tax Lien Ombudsperson 66 John St., 2nd Floor, NYC 10038
Phone:	212-504-4037
For Water & Sew Charges (General Information)	NYC Dept. of Environmental Protection Bureau of Customer Services
Phone: Online:	718-595-7000 nyc.gov/dep
To Dispute Water & Sewer Charges	NYC Dept. of Environmental Protection Water Lien Ombudsperson Office
Phone: Online: Email:	718-595-OMBU (6628) nyc.gov/dep ombud@dep.nyc.gov
Lien Servicing Company
Servicer: Phone: Online: Servicer: Phone: Online:	Xspand 866-283-6443 www.xspand.com Mooring Tax Asset Group 800-750-9210 www.mooringtax.com

Payment Center Locations and Directions

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Forms and Publications

New York City 2009 Lien Sale Brochure
"Understanding the City's Lien Sale Process"
Download English Brochure (1.3M)
Download Chinese-Language Version (6.48M)
Download Russian-Language Version (694k)
Download Spanish-Language Version (802k)

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Frequently Asked Questions
What kinds of debt are sold in a lien sale?
Can anyone buy liens?
When can the city sell a lien on my property?
Can my lien be sold even if I am in the process of disputing the tax or charge?
What happens after a lien is sold?
Can the new lienholder sell my property?
Are you currently serving in the military?

What kinds of debt are sold in a lien sale?
Delinquent charges that are eligible for the lien sale include outstanding property taxes, sewer or water charges, surcharges, and other property-related fees and charges, including, but not limited to sidewalk repairs or vacant lot cleaning charges (if the repairs or cleaning was performed by the City), and the accrued interest on all taxes and charges listed above.

Can anyone buy liens?
No. The City of New York does not offer liens for sale to individual investors or to the general public.

When can the city sell a lien on my property?
It depends on what kind of property you own and what kind of tax exemptions you receive.

Property Tax Debt. If you own a...

1-, 2-, or 3-family home; or
Residential cooperative or condominium apartment; or
Small store or office with one or two apartments above; or
Vacant land zoned for residential use

And you owe property taxes for 3 years, the City may sell a lien on your property, UNLESS you receive one of the following exemptions:

Senior Citizen Homeowners Exemption; or

Disabled Homeowners Exemption; or

State Real Property Circuit-Breaker Income Tax Credit (for owners with income under $18,000 and property with a market value of less than $85,000)

Water/Sewer Debt. If you own a...

2- or 3-family home; or

Residential cooperative or condominium apartment; or

Small store or offices with one or two apartments attached; or

Vacant land zoned for residential use

And you owe water/sewer rent charges for 1 year equal to or exceeding $1,000, the City may sell a lien on your property, UNLESS you receive one of the following exemptions:

Senior Citizen Homeowners Exemption; or

Disabled Homeowners Exemption; or

State Circuit-Breaker Income Tax Credit

NOTE: If you own a 1-family home and only owe water/sewer charges but not property taxes, the city may NOT sell a lien on your property. Although the water/sewer debt may not be sold, DEP will terminate your water/sewer service if charges remain delinquent.

Multi-family (4 units or more) and Rental Buildings, Commercial and Utility Properties

If you own a multi-family (4 units or more) or rental building, commercial or utility property, and you owe property taxes or water/sewer charges for 1 year, the City may sell a lien on your property.

Can my lien be sold even if I am in the process of disputing the tax or charge?
Yes. All delinquent property taxes or water/sewer charges that remain unpaid for the legally specified amount of time are eligible for sale, including those under dispute. If you are in the process of contesting the assessed value of your property, water/sewer or other charges, you must pay the charges in full to avoid having your lien sold. If your dispute is successful, you may be entitled to a refund.

What happens after a lien is sold?
Within 90 days of the lien sale date, the City notifies all property owners by mail of (a) the terms and conditions under which the lien was sold, (b) the name of the new lienholder, and (c) the name of the lienholder’s authorized representative whom the property owner should contact. The representative will also contact the property owner to discuss payment arrangements.

Property owners should not deal with, or make payments to, anyone other than the new lienholder or their authorized representative named in the letter sent by the City.

Once a lien is sold, the property owner then owes the taxes, charges, and accrued interest to the new lienholder, not to the City. The amount the property owner owes automatically increases once the lien is sold, because the lienholder is entitled to receive a 5% surcharge on the entire lien amount, plus 18% interest, compounded daily and payable semi-annually. The property owner may also be responsible for paying other administrative costs associated with the lien sale; for example, legal and advertising fees.

Can the new lienholder sell my property?
Not at first. However, foreclosure can begin 6 months after the lien sale date if you have not (a) paid the semi-annual interest within 30 days of the payment due date, (b) arranged some other payment schedule, or (c) remained current on property taxes or related charges that come due to the City after the lien sale. Foreclosure can also begin within 1 year after the lien sale date if you have not paid the lien in full or entered into an installment agreement with the new lienholder.

Are you currently serving in the military?

Active duty military personnel may request an exemption from the lien sale by completing an affidavit that provides the information about their military service, their property, tax warrants, Environmental Control Board violations, etc.

Department of Finance Policy Relating to the Servicemembers Civil Relief Act and the NYS Soldiers' and Sailors' Civil Relief Act #05-3. Revised 7/12/05
Download Memorandum and Application (56k)
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