PROPERTY TAX LIEN
ON YOUR BUFFALO NY HOME

How Property Tax Liens Work in Erie County NY

When property taxes go unpaid in Erie County, the county automatically places a lien on the property. This lien is a legal encumbrance — it attaches to the title and must be satisfied before the property can be sold or refinanced. Unlike a mortgage, a property tax lien has no grace period for legal attachment — it is placed the moment taxes become delinquent.

Erie County charges penalty interest on delinquent taxes — currently running between 12–18% annually depending on how long the balance has been outstanding. That means a $5,000 tax debt can grow by $600–$900 per year in penalties alone, compounding on top of the original balance.

The Erie County Tax Sale Process

Erie County conducts tax lien sales for severely delinquent properties. Here is how the timeline typically unfolds:

• Year 1–2 delinquent: County sends notices. Penalties accumulate. No immediate action beyond the lien itself.
• Year 3+ delinquent: Property becomes eligible for the Erie County tax foreclosure process.
• Tax foreclosure filing: County initiates in rem proceedings — a legal action against the property itself rather than the owner.
• Redemption period: Owner has a final window to pay all back taxes, penalties, and fees to redeem the property.
• Tax sale: Property is sold at public auction. Owner receives nothing — all proceeds go to satisfy the tax debt first.

A cash sale to NCB before tax foreclosure proceedings begin is almost always the better outcome. You receive your equity above the tax balance, rather than losing the entire property at auction.

What Happens to the Tax Lien When NCB Buys Your Home

At closing, the Erie County title company contacts the tax authority and obtains a payoff figure — the total of all delinquent taxes, penalties, and interest. This amount is paid directly from the sale proceeds at closing. The lien is discharged. Any remaining equity after the tax payoff and any other liens is paid directly to you.

Property Tax Lien vs Mortgage Foreclosure — Key Differences

Many homeowners don’t realize that a tax lien foreclosure operates separately from a mortgage foreclosure — and in New York, tax liens have priority over mortgages. This means:

• Your lender may not know about your delinquent taxes until a title search is run
• If a tax sale proceeds, your mortgage lender’s claim can be wiped out — creating significant legal complications
• Both your lender and Erie County have claims against the property simultaneously

A cash sale resolves both — NCB’s purchase pays off the tax lien and the mortgage balance at closing through the title company, clearing all encumbrances in a single transaction.