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    What to Do If NYC Is Threatening a Tax Lien Sale on Your House

    Written by Sam — New York Real Estate Professional | Sam The Homebuyer

    NYC sends 90-day, 60-day, 30-day, and 10-day notices before each lien sale. Each notice is a chance to act. Once the lien is sold to the trust, your debt grows at 18% compounded daily and a foreclosure clock starts.

    Four real options exist before sale day. One: pay the full balance. Two: enter a Department of Finance payment agreement (some require as little as $25 down). Three: apply for an exemption if you're a senior, disabled, veteran, or in active hardship. Four: sell the property before the sale and pay the lien at closing.

    The exemption applications take time, so start them the day you get the first notice — not the week before the sale. Payment agreements are usually approved if you apply, even if you've defaulted on one before.

    If none of the first three fit, selling is still a clean option. The lien gets paid from the proceeds and you walk away with whatever equity remains. Doing nothing is the only option that ends in losing the house.

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