BKM Properties of Shoreham Services

PROPERTY TAXES

The laws which govern unpaid property taxes vary between the Boroughs of NYC, Nassau and Suffolk County.

In the Boroughs and Nassau County if a homeowner is unable to pay their annual property taxes, each year those unpaid property taxes are sold as a lien against the property to a private, 3rd party purchaser, at public auction as a “Tax Lien Certificate”.

The successful purchaser at this auction sale then gets a certificate issued to them, which will legally allow for interest to be charged against the lien certificate.  Further, after two years of non-payment by the homeowner, the certificate holder can initiate judicial foreclosure proceedings to force an auction sale of the property.

The tax lien process in Suffolk County is completely different.  As penalty for non-payment of property taxes, the Suffolk County tax assessor holds the tax lien for each unpaid tax year within its’ own possession.  Each unpaid year is held cumulatively while charging varying amounts of interest depending upon the length of time the taxes have gone unpaid.   Consecutive years of tax arrears will lead to the foreclosure of the tax deed, and eventually the repossession of the property and ultimately a public auction.

Fortunately, once the tax deed is foreclosed upon by the County, there is a small window of opportunity to redeem the tax deed.  During this redemption process, the total amount of outstanding taxes must be paid in totality, or the property will be auctioned to satisfy the tax debt.

The bottom line is that no matter where you live in New York, timely payment of property taxes is necessary to avoid liens, fees, penalties, and foreclosures.  The process from county to county varies, but the outcome is ultimately the same.

If you have found yourself in the unfortunate position of having fallen behind on your property taxes, or there are liens against your property, or you may be facing the potential of a foreclosure due to a tax lien or tax deed- we can help you.  Please continue reading for the options afforded to you. 

The first scenario, and usually the quickest- you must pay off all outstanding arrears.  This is the quickest way to remedy the problem.  However, you must have the funds available to do so.  If you are not in the position to pay off all the outstanding taxes and corresponding penalties, you can then explore taking out a conventional or unconventional mortgage, or even possibly a reverse mortgage on your property, (pending you have good credit, income and you qualify).

The second scenario would be to sell your property.  We are well equipped to help you with this process and will ensure it as stress free as possible. Furthermore, we will do whatever is necessary to assist you in the transition and moving / relocation process.

Here at BKM Properties, we have mortgage consultants, brokers, and specialized attorneys we work with to provide you guidance through any of these processes.