Annually at its tax lien sale each February, Nassau County, New York, sells delinquent taxes as tax liens. The lien sale is open to investors of all sizes ranging from individual investors to large corporations. The interest on each lien sold is currently 10%.
Nassau uses a “bid down” process. Starting at 10% interest, a bidder purchases a tax lien by being the lowest bidder at sale for the lien. For example, if you were to bid 5% for a tax lien and a competing bidder bids 4% for the same tax lien, the competing bidder would become the purchaser of that tax lien and earn interest at 4%. In this example, the difference between the 10% and the 4% (i.e. 6%) is what is called the differential. The differential must be paid to Nassau County by the property owner when the tax lien is redeemed or by the purchaser when the purchaser of the tax lien applies for a tax deed.
The purchaser of a Nassau County tax lien earns interest at the rate it purchased the tax lien over the first two (2) years every 6 months (each period being a so-called “penalty period”). After two (2) years, if the tax lien remains unpaid, the holder of the tax lien can then send notice of its intent to either foreclose upon the tax lien or, if applicable, apply for a tax deed.
If the property is classified as commercial, the holder of the tax lien can either apply for a tax deed or foreclose upon its tax lien. If the property is classified as residential, the holder of the tax lien only has the option to foreclose upon its tax lien.
Tom has been representing the purchasers of Nassau County tax liens for several years. Although Nassau County’s tax lien rules are codified in the Nassau County Administrative Code, there are many potential pitfalls for those who are unfamiliar with Nassau County tax liens.
Tom and his staff are available to assist tax lien holders whose liens have failed to redeem after the two (2) year period and are now faced with the prospect utilizing their available remedies under the Nassau County Administrative Code. From inception to conclusion, The Law Office of Thomas P. Malone, PLLC provides its clients with professional representation and a forthright assessment of their cases.
If you are interested in or wish to learn more about Nassau County tax liens, please visit Nassau County’s website for more information. Put Tom’s vast experience in Tax Lien Foreclosure, Mortgage Foreclosure, Real Estate Closings, and Title Litigation to work for you. Contact Tom today to schedule your consultation.