New York is a mixed state where most counties have deed sales. Very few Counties have lien sales. The five boroughs of NYC do sell liens, but not to individual investors. Their lien sales are only open to a couple of fund companies. Nassau County has a huge tax lien sale once a year. This year’s sale will start on Tuesday February 21, 2006 and will run through Friday February 24th. You can find information on the tax sale on the county treasurer’s web site at
There are some important things to keep in mind if you intend to bid at the Nassau County sale. First of all you have to register in advance and there is a $100.00 fee for each day that you intend to bid. You can register at 9:00am before the sale, or you can pre-register online or by calling the tax sale department at 516-571-5023. You can purchase the updated sale list from Nassau County for $150.00. This list does not give the address of the properties only the tax ID numbers, you will have to cross-reference this list with county assessment information, which is
available on the county assessor’s web site at http://www.nassaucountyny.gov/mynassauproperty/. If you don’t have time for this part of your due diligence, you can buy a detailed property list from LienSource for $500.00 at http://www.liensource.net/.
Here are some other important tidbits of information that I have gleaned from the County web site and from subscribers in the NY area:
- You have to pay 10% of the amount due at the sale and the balance is due in 30 days.
- Even though the interest is bid down (it can be bid down to zero). The maximum interest rate (10% for each 6 month period up to 24 months) is still collected by the county. The difference between the interest bid and the maximum interest is known as the “differential lien” and must be paid to the county by the property owner upon redemption
or by the lien-holder upon application for a deed.
- The lien holder may pay subsequent taxes, and will get interest on the subs, but only at the rate that was bid at auction.
- Liens are sold for school or county taxes but the individual municipalities
may have their own tax sales, so check with them to make sure that no
municipal taxes are due on a property that you bid on.
Note: Every effort is made to give you accurate and useful information regarding tax sales.
This information, however, is constantly changing and is only intended to be a guide
for educational purposes. It is no substitute for legal or financial advice, and no
guarantees are implied.
Happy and Prosperous Investing,
Joanne M. Musa,
The Tax Lien Lady
Answering your questions about tax lien investing
Tax Lien Consulting, LLC