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Lien sales
If you do not pay your property taxes, water and sewer charges, and other property-related charges, your property may be at risk of being included in a lien sale.
When you are included in the lien sale, the City of New York sells your debt to an authorized buyer. The buyer then has the right to collect what you owe. This does not mean that your property has been sold, but if you do not resolve your outstanding debt, the lien sale can be a first step toward foreclosure.
If you are at risk of being included in the lien sale, you will receive warning notices in the mail 90, 60, 30, and 10 days before the sale.
If you receive a warning notice, you must take one of the steps listed below.
- Property taxes and related charges: Visit CityPay
- Water or sewer charges: Visit DEP's website
- Emergency Repair and Alternative Enforcement charges: Visit CityPay
To avoid the lien sale, you must pay at least the minimum amount shown on your warning notice.
You have three payment plan options: a standard payment plan, a PT AID payment plan, and a PT AID “Circuit Breaker” payment plan. If you are approved for one of these plans, you may also be eligible to pay a reduced interest rate.
Payment plan option 1: Standard
A standard payment agreement is available to all property owners, regardless of age or income. A down payment is encouraged, but not required, and you can choose whether to be billed monthly or quarterly. Your agreement can last between one and 10 years. You must make your payments as agreed, and you must also pay new taxes and charges on time. Interest will continue to accrue on all past-due charges. Apply for a standard payment plan.
Payment plan option 2: PT AID
You may be eligible for a Property Tax and Interest Deferral (PT AID) payment plan if you meet all of the following requirements:
- You own a one-, two-, or three-family home or condominium unit.
- The property has been your primary residence for one year or more.
- You earn $107,300 or less per year.
- You have fallen behind, or are in danger of falling behind, on your property taxes.
If you believe that you are eligible, you can apply for a PT AID payment plan.
Please note that if you are a senior (65 or older), you can apply for a special PT AID plan that will allow you to defer the payment of your unpaid taxes and charges, either indefinitely (to be paid by your estate) or for a specific time period.
Payment plan option 3: PT AID Circuit Breaker
You may be eligible for a PT AID Circuit Breaker payment plan if:
- You meet the PT AID eligibility requirements listed above.
- Your property tax bill is more than 10% of your income.
- Your property’s assessed value is $250,000 or less.
You must make a minimum annual payment to participate in the program.
If you believe that you are eligible, you can apply for a PT AID Circuit Breaker payment plan.
Reduced interest rate
You may be eligible for a reduced interest rate on your payment plan if:
- Your property is a one-, two-, or three-family home or condominium unit with an assessed value of $250,000 or less.
- The property has been your primary residence for at least one year.
- The total income of all owners does not exceed $200,000.
You will receive the reduced interest rate automatically and do not need to submit an application if either of the following applies to you:
- You are enrolled in a property tax payment plan through the Property Tax and Interest Deferral (PT AID) Program.
- You are enrolled in a standard payment plan, are up to date on your payments, and receive the Enhanced STAR credit or exemption, the Senior Citizen Homeowner’s Exemption (SCHE), or the Disabled Homeowners’ Exemption (DHE).
If neither of the above applies to you, but you believe you might be eligible, you can apply for the Reduced Interest Rate Property Tax Payment Plan.
Certain property tax exemptions can keep your property out of the lien sale. Learn about each of them and apply:
You may be eligible to be removed from the lien sale for one year if:
- You own a one-, two-, or three-family home or condominium unit.
- The property is your primary residence.
- You do not own any other properties in New York City.
- The combined annual income of all owners and their spouses who reside at the property is less than $107,300.
If you meet these requirements and are not able to pay what you owe or enter into a payment agreement, submit a Lien Sale Easy Exit Program application. (The application will be available soon.) You will be connected with resources and assistance.
If you only owe HPD Emergency Repair charges, you may be eligible to be removed from the lien sale for one year if:
- The property is a tax class one property.
- You are the owner of the property and it is your primary residence.
- You do not own any other properties.
- Your annual income is less than $107,300.
If you believe that you are eligible, you can submit an emergency repair certification. (The certification form will be available soon.)
Owners of certain one-, two-, or three-unit tax class one residential properties may choose to have their property foreclosed and transferred to an approved nonprofit organization after a lien is sold. You will then be able to remain in the home as a tenant at an affordable rent. Legal counseling is required. To begin the process, submit a Voluntary Foreclosure Program application. (The application will be available soon.)
Other information
What is a lien sale?
A lien is a legal claim against real property for unpaid property taxes or other property charges, including the interest due on the taxes and charges. The sale will transfer the unpaid liens to an authorized buyer. It is not a sale of the property, but if the taxes and/or charges are not paid or resolved, the new lienholder can begin a foreclosure proceeding in court.
Can anyone buy liens?
The City only sells liens to a single authorized buyer, and not to the general public. Please do not contact us about purchasing liens.
What kinds of debt are sold in a lien sale?
Property tax debt, water and sewer debt, and other property-related fees and charges, including Emergency Repair Program and Alternative Enforcement Program charges, are sold in a lien sale, along with any accrued interest on the debt.
Can my lien be sold even if I am in the process of disputing the tax or charge?
Yes. If you are in the process of contesting the assessed value of your property, or the amount of your other charges, you must pay the taxes and/or charges in full or enter into a payment agreement to prevent the sale. If your dispute is successful, you will be entitled to a refund of any overpayments you made.
What happens after a lien is sold?
Within 90 days after a lien sale date, the City notifies all property owners by mail of the terms and conditions under which the lien was sold, the name and address of the new lienholder, and the name of the lienholder's authorized representative whom the property owner should contact. The representative will also contact the property owner by mail 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.
When the City of New York bills your property for new taxes and charges, you must continue to pay them to the City.
What additional charges will result from the sale?
Once a lien is sold, the property owner then owes the taxes, charges, and accrued interest that were included in the lien sale to the new lienholder, not to the City. The amount owed increases once the lien is sold. The lienholder is entitled to charge:
- A 5% surcharge on the entire lien amount.
- Interest, compounded daily and payable semi-annually. For properties with an assessed value of $250,000 or less, interest on any charges sold will accrue at the rate of 5% per annum, compounded daily. For properties with an assessed value of over $250,000, interest on any Department of Finance charges sold will accrue at the rate of 18% per annum, compounded daily. These are the same interest rates that the City charges for delinquent property taxes.
- Administrative costs associated with the lien sale, including an estimated $300 to cover the costs of any advertisements and notices.
Can the new lienholder sell my property?
Yes, the new lienholder can sell your property, but not at first. Foreclosure can begin within one year after the lien sale date if you have not paid the lien in full or entered into a payment agreement with the new lienholder. However, the lienholder may begin foreclosure proceedings earlier than one year after the lien sale date if the semi-annual interest payment is not paid within 30 days of the payment due date, or if current taxes or charges remain unpaid for six months before the lien is paid in full.
The Department of Finance holds lien sale outreach events. Sign up to be notified of these events by email.
Depending on your type of property, there can be as many as four conditions that make your property eligible for the sale. Use this table to understand the rules that apply to your property.
| Property Tax Debt | Water/Sewer Debt | AEP Debt * | ERP Debt * | |||||
|---|---|---|---|---|---|---|---|---|
| Type of Property | Minimum Amount | Years Overdue | Minimum Amount | Years Overdue | Minimum Amount | Years Overdue | Minimum Amount | Years Overdue |
| 1 Family - Owner Occupied | $5,000 | 3 | See note below. | N/A | N/A | N/A | N/A | |
| 1 Family - Non-Owner Occupied | $5,000 | 3 | See note below. | $1,000 | 1 | $1,000 | 1 | |
| 2-3 Family - Owner Occupied | $5,000 | 3 | $3,000 | 1 | N/A | N/A | N/A | N/A |
| 2-3 Family - Non-Owner Occupied | $5,000 | 3 | $3,000 | 1 | $1,000 | 1 | $1,000 | 1 |
| Residential Condominium | $5,000 | 3 | $1,000 | 1 | $1,000 | 1 | $1,000 | 1 |
| Residential Cooperative Building | $5,000 | 3 | $1,000 | 1 | $1,000 | 1 | $1,000 | 1 |
| Developable Class 1 Vacant Land | $1,000 | 3 | N/A | N/A | $1,000 | 1 | $1,000 | 1 |
| Small Store or Office with 1 or 2 Apartments Above | $5,000 | 3 | $3,000 | 1 | $1,000 | 1 | $1,000 | 1 |
| Housing Development Fund Company (HDFC) Rental Building | $5,000 | 2 | $5,000 | 2 | $5,000 | 2 | $1,000 | 2 |
| All other | $1,000 | 1 | $1,000 | 1 | $1,000 | 1 | ||
*Only charges posted on or after Jan. 1, 2006, may be included.
Water and sewer debt: If you own a one-family house and you only owe water/sewer charges, but not property taxes, the City cannot sell a lien on your property. Although the water/sewer debt may not be sold, DEP may terminate your water/sewer service if the charges remain delinquent.
Abandoned properties and successive sales of liens may be subject to different eligibility requirements.
Visit the lien sale archives page to access the lien sale list archives, status reports, and trust documents.