Is Your Home at Risk? Understanding NYC’s Tax Lien Sale & How to Protect Your Property

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A tax lien sale is when the City of New York sells unpaid property debts (like property taxes and water bills) to a private company. This company then adds fees and interest and can take legal action if the debt is not paid.

If you owe property taxes, water bills, or other charges, your debt could be sold to a third party—and that’s just the beginning.

⚠ What This Means for You:

  • If your debt is sold, the lienholder can take legal action to collect.
  • Foreclosure proceedings can begin in court.
  • You could lose your home.

CHECK YOUR MAIL: You’ll receive warning notices 90, 60, 30, and 10 days before the sale. PLEASE DO NOT IGNORE THEM!

Call us for more details!

If you don’t pay your property taxes, water bills, or other city charges, the City of New York can sell your debt to a private company. This is called a tax lien sale.

What Happens in a Tax Lien Sale?

  • Let’s say you owe money to New York City  such as nnpaid property taxes, water bills, or other charges that just keep adding up.
  • The City warns you – You’ll get notices 90, 60, 30, and 10 days before the sale, and you don’t pay;
  • Your debt is sold – The City sells your debt to a private company (a lienholder).
  • The lienholder collects the money – The new lienholder adds fees and interest to your bill and demands payment.
  • Risk of foreclosure – If you don’t pay, the lienholder can take you to court to foreclose on your home.

⚠ Your home is NOT sold in the lien sale, but it CAN lead to foreclosure if the debt is not paid.

A lienholder is a private company that buys unpaid property debt from the City of New York. When you miss payments on property taxes, water bills, or other city charges, the City sells your debt to one of these companies in the tax lien sale.

In New York City, lienholders are almost always companies, not ordinary people!

When the City sells tax liens, it does not sell them to individuals—instead, it sells them to large financial firms, private investors, or debt collection agencies.

These companies then charge interest and fees on the debt and can take legal action to collect the money.

  • Collects the Debt – Once they buy your debt, they become your new creditor and demand payment.
  • Adds Extra Fees & Interest – They charge penalties, legal fees, and high interest on top of what you already owe.
  • Takes Legal Action – If you don’t pay, the lienholder can take you to court and begin foreclosure proceedings.
  • Forecloses on Homes – If the debt remains unpaid, the lienholder can take ownership of your property through foreclosure.
  • Private investors – Companies that buy tax liens as a business.
  • Debt collection firms – Agencies that specialize in collecting money from property owners.
  • Banks or financial groups – Some financial institutions invest in liens as a way to make money.

REMEMBER:

Lienholders are NOT city agencies – they are private businesses that profit from collecting your debt.

  • If the homeowner does not benefit from the lien sale, who does?
    • Private investors and debt collectors – They buy liens at a discount and make money off interest and fees.
    • The City of New York – Instead of collecting unpaid property taxes themselves, the City gets a lump sum payment from lien buyers.
    • Banks and hedge funds – Some large financial institutions see tax liens as a profitable investment.

There are more than 11,500 Brooklyn properties on the 2025 Lien Sale 90 Day Notice List!

  • Homeowners – Many struggling homeowners face foreclosure and lose generational wealth.
  • Communities – When investors take over homes, neighborhoods change, and long-time residents are displaced.
  • Local businesses – As neighborhoods shift, small businesses often lose their customer base and are forced to close.

No. The tax lien sale does not sell your property, but it sells the debt tied to your home.

However, if you don’t pay the new lienholder, they can take you to court and start foreclosure, which could lead to losing your home.

You will get official warning notices in the mail 90, 60, 30, and 10 days before the sale. If you receive these notices, act fast!

If you don’t pay these bills, your property may be included in the sale:

  • Property taxes
  • Water and sewer charges
  • Emergency repair charges (for city-ordered repairs)

To stop the lien sale on your property, you can:
✔ Pay what you owe before the deadline.
✔ Set up a payment plan with the City.
✔ Apply for property tax exemptions (seniors, veterans, and other qualified homeowners may be eligible).
✔ Submit an online Lien Sale Easy Exit application  or a paper one – download it here (for some residential properties).
✔ Request military debt relief (if you are eligible).
✔ File an Emergency Repair Certification (if your bill is from emergency repairs).

Note

Until your lien is sold, the city can offer you AFFORDABLE payment plans.

Once your lien is sold, those options are no longer available.