Here’s What You Need to Know About This Year’s Tax Lien Sale

Even in the midst of the global pandemic, New York City is still planning to sell off unpaid debts of homeowners to the highest bidders. Each year, the New York City Department of Finance (DOF) sells the liens of properties that have unpaid debts, including property taxes, water bills, and other charges. Once a tax lien has been sold, a third party collection agency can add high fees and interest compounded daily. This mounting debt can result in an increased financial burden for families already behind on their bills and can force some homeowners into foreclosure.

The tax lien sale is set to start on Friday, December 17th, 2021. There are a number of ways that you, as a homeowner, can get support and remove yourself from the tax lien sale list ahead of the December deadline.

New this year is the option to remove your property from the sale list by filing a COVID-19 hardship declaration with the DOF, either online or by mail. To qualify for the residential hardship declaration, you must meet the following criteria:

  • You must be an individual (not a corporation or other business entity).

  • You must own no more than 10 residential dwelling units, including your primary residence.

  • Your property must not be vacant or abandoned.

  • The units that are not your primary residence must be occupied by a tenant or available for rent.

  • You must have experienced at least one of the following COVID-19-related hardships:

    • Significant loss of household income during the COVID-19 pandemic.

    • Increase in out-of-pocket expenses due to illness or related to the performance of essential work during the COVID-19 pandemic.

    • Reduced income or increased out-of-pocket expenses due to the need to care for a child or an elderly, disabled, or sick family member during the COVID-19 pandemic.

    • Moving expenses or difficulty in relocating to another residence during the COVID-19 pandemic.

    • Other circumstances related to the COVID-19 pandemic that have: negatively affected your ability to obtain meaningful employment or earn income; significantly reduced your household income; or significantly increased your expenses.

    • The inability of one or more of your tenants to pay their rent in full since March 1, 2020.

If you are unable to pay what you currently owe, there are other options, such as entering into a payment plan or applying for an exemption. See more options here.

The Department of Environmental Protection (DEP) will not be participating in the 2021 tax lien sale. Unlike in previous years, water and sewer debts owed to the DEP will not be sold during the lien sale this year.

If you have questions or need support with tax lien issues, contact us at 1-855-HOME-456.

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