New York tax authorities appear poised to begin resuming property tax lien sales and foreclosures. Here’s how to save your home before it is too late…
After some government intervention to minimize late interest on delinquent property taxes, foreclosures and evictions in the first wave of the coronavirus pandemic in 2020 the flood gates could be about to open. The NY Post warns of a new wave of foreclosures that could see many property owners and landlords lose their assets. According to data from Black Knight’s Mortgage Monitor report, the number of borrowers 30 or 60 days late on their loans topped the peak of the 2008 crisis by 13% and over 80% respectively.
While traditional mortgage foreclosures by lenders have typically taken a long time to process in NY, property owners can lose their homes and business property due to past due property taxes much faster.
Once owners fall late they can be subject to penalties, fines and 18% interest. That makes it even harder to catch up. In recent years some have lost their homes for as little as $6 in property tax related miscellaneous fees they overlooked, even though they paid the property tax bill.
NYC tax lien sales are set to resume on December 3rd, 2020. See the lists of properties with liens headed to auction in the 5 boroughs here. Based upon Nassau County’s calendar last year, property owners can expect their liens to be auctioned off online by February 18th 2021. Though this could happen earlier.
Bracing For New Taxes
At the time of publishing this report it appeared presidential candidate Joe Biden was most likely to win the election based on votes counted. While the country clearly spoke up for what they wanted, and we all hope for unity and less craziness regardless of who emerges as the next president, Biden has been very vocal about his plans to raise taxes even further. This could make it far harder for many Long Islanders to catch up and save their properties.
In addition to the usual annual property tax hikes, and hidden hikes used to raise taxes without triggering tax caps, this menu of new taxes, tax increases and policies and the impact on jobs and income leave little time for property owners to get out ahead of the situation. Coverage by the Tax Foundation estimates these new income and business taxes and increases on current taxes will mean $3T to $6T in extra taxes being paid, while stocks, GDP and net income fall, and over 500,000 full time jobs are lost.
What You Can Do
If you are already cringing at your new property tax bill or have fallen behind, this is the time to act. You have probably been overcharged. Maybe even by thousands or tens of thousands of dollars. Save your home before new taxes hit, by appealing your assessment and bill with the help of Property Tax Adjusters, Ltd.