How New York Tax Liens Work
New York is a tax lien state, meaning when property owners fail to pay their property taxes, the county sells tax lien certificates to investors rather than the property itself. As an investor in New York tax liens, you pay the delinquent taxes and earn 14% annual interest when the property owner redeems.
New York Redemption Period
Property owners in New York have 24 months to redeem their tax lien by paying the delinquent taxes plus 14% interest. If the owner doesn't redeem within this period, you may be able to foreclose and potentially acquire the property.
Calculating Your New York Tax Lien ROI
Use the calculator above to estimate your potential returns on New York tax lien investments. Key factors affecting your ROI include:
- Purchase price: The amount you pay at auction
- Interest rate: New York's statutory 14% rate
- Holding period: Time until redemption or property acquisition
- Property value: Potential profit if you acquire the property