New York City is bringing back the tax lien this year. This process was paused during the COVID-19 pandemic, but now it’s starting up again. The sale happens when property owners fall behind on payments like property taxes, water bills, or charges for emergency repairs. Instead of waiting for homeowners to catch up, the city packages those debts and sells them off. This means thousands of properties, many of them owned by families with limited resources, are now at risk of being included in the sale.

How the Process Works

When a homeowner falls behind on certain payments, the city places what’s called a lien on the property. A lien is a legal claim saying that money is owed. The city then sells that lien to a trust, which is a group of private investors. Once the lien is sold, the debt is no longer owed to the city but to the trust. If the debt continues to go unpaid, the trust can eventually take steps toward foreclosure, which could result in the owner losing their property.

Who Will Be Hit the Hardest

The sale doesn’t affect all property types equally. Smaller homes, especially one- to three-family houses, are often at the highest risk. In many of these cases, the issue isn’t unpaid taxes but unpaid water bills, which can pile up quickly if an old home has leaks or plumbing problems. These are often families who may own a house but are struggling to keep up with expenses. A missed payment or two can turn into a large debt when interest and penalties are added.

New Protections and Assistance Programs

The city has made some changes to try to protect homeowners from losing their properties too quickly. There is a new program called the Easy Exit Program, which gives owner-occupied households extra time — up to one year — before their liens can be sold. The city has also created more payment plan options, allowing people to pay back their debt in smaller amounts over time instead of all at once. On top of that, officials set aside two million dollars for programs that provide free counseling and legal help to affected homeowners. These changes are meant to soften the impact, but they don’t erase the risks entirely.

The Risks and What Homeowners Should Do

The dangers of the tax lien sale are real. Once a lien is sold, homeowners have fewer protections than they would in a normal mortgage foreclosure, making it easier for them to lose their homes. Scammers also watch the public list of properties that are part of the sale and may try to trick struggling owners with false offers. Because of this, people at risk are encouraged to seek professional help, such as legal aid or housing counselors, rather than making quick decisions on their own. Acting early, setting up a payment plan, or applying for assistance programs can make the difference between keeping or losing a home.