What To Do If A Lien Is Sold On Your Property?
If you have received a lien sale notice by mail or if the property has been listed on a published lien sale list, (NY Post, NY Daily News, Department of Finance) it means that the City’s records show that you owe property taxes, water, sewer, or other property-related charges and accrued interest.
As a result, a lien for the entire delinquent amount will be sold in the 2009 lien sale, unless you resolve your debt by May 1, 2009.
The most important thing for you to do is to contact the Department of Finance if you owe property taxes and/or the Department of Environmental Protection if you owe water/sewer charges. You must arrange for payment, or, if you think that you do not owe the money, you must dispute the charges to correct the City’s records before May 1, 2009
When the City sells a lien, it is not selling the property. The lienholder does not take title to the property. The lienholder purchases the right to collect the money that was owed to the City. Ultimately, however, if the property owner does not pay what is owed, the lienholder can begin a formal foreclosure proceeding in court.
Once a lien is sold, the property owner then owes the taxes, charges, and accrued interest to the new lienholder, not to the City. The amount the property owner owes automatically increases once the lien is sold, because the lienholder is entitled to receive a 5% surcharge on the entire lien amount, plus 18% interest, compounded daily and payable semi-annually. The property owner may also be responsible for paying other administrative costs associated with the lien sale; for example, legal and advertising fees.
New York runs the largest municipal water system in the country, but for years it was the only major provider that never shut off service to residential properties, no matter how much was owed. Officials feared that tenants in multifamily buildings would be unfairly penalized if the owner, managing agent, coop board or landlord did not pay the bills on time.
If you own a residential cooperative or condominium apartment and your building owes property taxes for 3 years and or owes water/sewer charges for 1 year equal to or exceeding $1,000 the city may sell a lien on the property.
As a result, a lien for the entire delinquent amount will be sold in the 2009 lien sale, unless you resolve your debt by May 1, 2009.
The most important thing for you to do is to contact the Department of Finance if you owe property taxes and/or the Department of Environmental Protection if you owe water/sewer charges. You must arrange for payment, or, if you think that you do not owe the money, you must dispute the charges to correct the City’s records before May 1, 2009
When the City sells a lien, it is not selling the property. The lienholder does not take title to the property. The lienholder purchases the right to collect the money that was owed to the City. Ultimately, however, if the property owner does not pay what is owed, the lienholder can begin a formal foreclosure proceeding in court.
Once a lien is sold, the property owner then owes the taxes, charges, and accrued interest to the new lienholder, not to the City. The amount the property owner owes automatically increases once the lien is sold, because the lienholder is entitled to receive a 5% surcharge on the entire lien amount, plus 18% interest, compounded daily and payable semi-annually. The property owner may also be responsible for paying other administrative costs associated with the lien sale; for example, legal and advertising fees.
New York runs the largest municipal water system in the country, but for years it was the only major provider that never shut off service to residential properties, no matter how much was owed. Officials feared that tenants in multifamily buildings would be unfairly penalized if the owner, managing agent, coop board or landlord did not pay the bills on time.
If you own a residential cooperative or condominium apartment and your building owes property taxes for 3 years and or owes water/sewer charges for 1 year equal to or exceeding $1,000 the city may sell a lien on the property.
No comments
All related comments are welcome. Spam and spammy links will not be published and will be deleted.