Property Tax Liens In New York
New York is a mixed state. Some counties have tax lien sales and others have tax deed sales. Most of the state conducts deed sales. Nassau County sells liens, as do the five boroughs of NYC.
The tax lien sales in NYC, however, are not open to investors. They are private sales where the liens are sold to city fund companies. Later on these companies may have public sales.
Tax Liens Nassau County has its own codes regarding tax liens. The interest rate is 10% for every 6 months (an effective rate of 20% per annum) and the redemption period is 2 years. The sale is held in February and for the past 2 years (2009 and 2010) the sale was held for 4 days. In order to bid at the sale you must pay a $100.00 registration fee for each day.
If you are successful in purchasing any liens you must pay 10% of the amount at the sale and the 90% balance must be paid in full within 60 days or you will lose your lien and your down payment.
The interest rate is bid down at the sale. In past tax sales the interest rate has been frequently bid below 2% (per 6 months) and sometimes goes to 0%. Subsequent taxes earn interest at the bid rate, not the maximum rate of 10% per 6 months. Bidding 0% on one of these liens, or anything below 3% is not a good investment. The tax sale list can be purchased from the county a few weeks ahead of the tax sale.
You can find out more about the Nassau County tax sale on the county treasurer’s web site at http://www.nassaucountyny.gov/agencies/Treasurer/index.html. You can also purchase the enhanced list from Tax Sale Resources at www.TaxSaleResources.com.
The villages in Nassau County can also conduct their own tax sales for assessments and taxes that are owed to the villages. So in addition to checking with the Nassau County tax collector’s web site, you may also want to call the municipal tax collectors to inquire if and when 48 they have a tax sale.
Also it is good to check on any properties that you are going to bid on in the Nassau County tax sale to make sure that they have no village liens or outstanding village taxes. Tax Deeds As far as deed sales go, each county conducts their sale a little differently.
All counties require advance registration and some counties require a refundable deposit in order to register to bid at the sale. Some counties accept written bids.
The bid must come from a registered bidder and be accompanied by a deposit of 10% of the bid price, usually in certified funds. It is advantageous to be at the auction, however, since in some cases the written bid will be considered the minimum bid for the property.
The written bid will be called out and bidders at the auction will have a chance to out bid it. Tax sales must be big business for Allegany County. They charge a 10% premium for all purchases at the tax sale.
That’s 10% of the bid price, in addition to the bid price. The successful bidder must also pay current taxes, and closing fees.
Allegany County conducts an informational seminar a couple of months before their tax sale. The $15.00 cost of the seminar includes admission for 2 to attend and tax sale list catalog.
You can also get copies of the auction catalog online without attending the seminar, and you do not have to attend the seminar in order to bid at the tax sale. You can get the information and tax sale list for Allegany County tax sale at http://www.alleganyco.com/btn_taxsale/templates/FW_layout.htm.
Onondaga County also charges a 10% premium and an administrative fee of $360 per parcel. They also require bidders to show a valid driver’s license, have proof of a social security number, and sign a statement that they owe no taxes in Onondaga County, and that they are not an employee of the county or the real estate auction company that conducts the auction.
You can get all the information and tax sale list for the Onondaga County tax sale at http://www.ongov.net/rpts/auction.html. Tax sales are usually the responsibility of the county treasurer.
Not all counties have tax sale information online, but a few do. You will have to go to the county assessor’s office to get assessment information for 49 properties and the mapping office to find the locations of the properties on the tax sale list.
Larger counties may have a mapping service online. Some of the New York counties now have their tax deed sales conducted by an online auction company. They actually have a live auction, but you can also put in your bid online. The company that conducts most of these auctions is www.nysauctions.com.