If you’re wondering what’s the deal with the tax lien sale, you’re not alone. The sale has become a popular revenue-raiser for cities, but it’s also a source of scams. This article will explain why tax lien sales are bad for communities, and explore a better process. If you’re wondering whether lien sales are good for your city, read on! Hopefully you’ll learn something new and valuable!
Tax lien sale is a revenue-raiser for the city
But there are some concerns about the city’s tax lien sale program. Advocates, including Housing First’s Katrell Lewis, have called for major changes in the program. The first step is to change the program’s rules. City officials should consider how to make the sale process fairer for everyone. Some advocate groups suggest that the city use community land trusts to sell tax liens. That way, communities can have more options than they do now.
Tax lien sales are a common enforcement tool used by cities around the country. The sales are held to recoup lost tax revenue. The process generates tens of millions of dollars for cities each year. The last sale in December had a total value of $145 million. During this time, the number of properties with unpaid debt had fallen to under 2,500. However, the city has delayed the 2020 sale due to the Zika virus. While the city has not made any specific plans for the future, it is important to remember that this tax lien sale is a revenue-raiser for the city.
It is harmful to low-income communities
In East New York, Marcus lives in a house that he inherited from his parents. He fell behind on his property taxes, and now the city has a $11,000 lien on his home. It is almost impossible to pay this debt, so he has started receiving visitors. And now, his neighbors are also calling him. And now, he is unable to sleep in his own home, for fear of losing it.
While tax lien sales raise money for the city, they are particularly detrimental to low-income communities. In addition to displacing long-time owners, they also result in the displacement of renters and owner occupants. According to the Coalition for Affordable Housing, lien sales were six times more likely to occur in boroughs with a high percentage of Black homeowners. Another study by the nonprofit NY Focus found that the resulting turnover also caused property owners to evict tenants.
It attracts investors
Tax liens are a great way to diversify a portfolio. However, they are not without risk. You can’t guarantee the return or that the property will be in a good condition. This may mean more expenses down the road. Here are some of the ways to maximize your profits from a Lien sale. All of them involve risk. Read on for more information. Lien sale attracts investors and is an excellent way to diversify your portfolio.
It should be delayed or ended
The New York City government has repeatedly delayed the tax lien sale, but a recent proposal from State Attorney General Letitia James calls for a permanent ban. Property taxes account for more than 40% of a city’s tax base. With that in mind, levelheaded lawmakers must consider whether to delay or end the lien sale entirely. In the meantime, there is no reason to rush to the courthouse to stop foreclosure.
Proponents of lien sale reform have called for a community land trust model, which has been advocated by housing advocacy groups and officials. Housing advocates, such as Abolish the NYC Tax Lien Sale Coalition, are in favor of the land trust model, which incorporates outreach and gives property owners more choice. Housing advocates believe that such a program is an essential step to reforming the city’s tax lien system.
