Purchase Of A Tax Lien
Hi, I was wondering who can purchase a tax lien in nyc if personal investors or the general public can't?
Hi, I was wondering who can purchase a tax lien in nyc if personal investors or the general public can't?
In the 5 boros the city will only sell the liens to a special purpose trust (3rd party co). If the owners don't pay after it's been sold to the trust then the prop is auctioned off (not sure of the timeframe, but it takes a long while before it gets to auction).
Outside of the 5 boros, the rules vary (i.e. nassau county).
New York tax liens are not available in every state county. Tax liens are generally available in the smaller counties
They do have leftover liens that are not sold to prospective buyers at tax lien auctions that can be purchased at great discounts.
Under a program initiated in 1996, the City of New York sells unpaid real estate taxes, water, sewer, and other charges that are liens against a property to special purpose trusts known as the NYCTL Trusts. These trusts raise the cash to purchase the delinquent liens by selling bonds. Bondholders are repaid with collections generated from the sold liens.
The sales are administered by New York City’s Department of Finance (DOF). Before a sale takes place, the City provides notice of its intention to sell tax liens by publishing a list of the liens to be sold sixty, and again, ten days prior to the sale date. In addition, thirty days before the sale date, DOF sends a written notice to the property owner listed in the City’s records. The New York City Administrative Code provides for a 5% surcharge, plus other costs associated with the administration of the sale (i.e. legal fees, advertising costs, etc.) to be added to the lien balance. The interest rate accruing on the sold balance is 18%, compounded daily.
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