Payment Agreement Plans
What you should do if you receive a Notice of Possible In Rem Tax Foreclosure.
The Notice of Possible In-Rem Tax Foreclosure is a letter Finance sends to taxpayers who owe certain past property tax debt. If the property is included in the In-Rem Foreclosure you can lose ownership.
You must respond to this notice immediately and pay the back taxes and interest you owe to avoid foreclosure. If you cannot pay in full, you may qualify for a formal installment plan to stop foreclosure and pay over time. Call us using the phone numbers on the notice for further information.
In-Rem Actions
If a property is included in an In-Rem action it is possible it will be foreclosed.
Property included in tax foreclosure documents filed in New York State Supreme Court is part of the In-Rem action conducted together by Finance and the Department of Housing Preservation and Development (HPD).
Pre In-Rem – Potential property owners are notified of an upcoming action. This is the earliest and least expensive time to stop foreclosure. It allows for a payment agreement with a smaller down payment and less administrative fees.
Post In-Rem – Legal paperwork is being processed. There is still time to begin a payment agreement plan, but it will be more expensive.
Final Judgment – Property is included in the action and can soon be foreclosed, resulting in a loss of your ownership. You can still recover your property. But it now requires a large portion of the amount due as an agreement down payment to stop foreclosure.
Eligibility
Requirements
Contact Us
Payment Plan for Back Property Taxes
Installment Plans are very rigid with high interest rates and down payments. They are generally not recommended unless your property is at risk of an In-Rem foreclosure action. Plans should be used as a last resort, but they can stop any further actions (unless scheduled payments are not made).
If you do not make your scheduled payments on time, you may not be allowed from making future payment plans.
NOTE: You can make back property tax payments at any time before you receive a notice. The payment may be full or partial. No agreement is required.
You can send a separate check or include back payments with your regular quarterly or semi-annual property tax amount. Be sure to write your borough, block, and lot on the check and the period(s) you are paying. This will help us apply the money correctly. In this way, you can have the benefits of a payment plan without an agreement and never get to the point of an In-Rem action.
Eligibility For Payment Agreements On In-Rem Properties
Applicants may request a monthly or quarterly payment plan for property tax or property-related charges. Even non-owners of the property are eligible for payment plans. For example, an adult child who wishes to pay back taxes on the home of an elderly parent may qualify for a payment plan with permission of the owner.
Note: Any payments by non-owners does not give them automatic ownership or consideration of any kind! Ownership can only be transferred by the current owner(s), a legally appointed estate representative or the courts.
Pre In-Rem – The Dept. of Finance will review your formal request for a payment plan. This formal agreement offers specified down payment amount with periodic installments.
Post In-Rem - You must obtain approval from the Department of Housing Preservation and Development for a formal payment agreement.
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Requirements
You must visit a Finance Business Center to establish an In-Rem agreement plan. Please find out in advance how much funds in cash or check you need to bring. The down payment is based on the total unpaid tax and whether you are setting up the payment plan before or after the property is In-Rem. See down payment tables below:
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Down Payments for In-Rem Property Tax Payment Plans
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PRE-IN REM
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POST IN-REM
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One- to five-family house, co-op, condo, and Housing Development Fund Corp. (HDFC) housing
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10% of total tax due
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15% of total tax due*
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All other Class 1 and Class 2 properties (other than those described above)
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15% of total tax due
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20% of total tax due*
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Class 3 and 4 properties – Commercial and Utility
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15% of total tax due
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25% of total tax due*
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*In addition, if the last day to redeem the property without penalty has passed and the property goes In-Rem, the taxpayer will also have to pay a 5% penalty (maximum $1,000) and a $35 fee to set up a plan.
The terms of the In-Rem payment plans for property taxes are governed by the New York City Administrative Code and are not negotiable. After the Final Judgment of Foreclosure has been filed with the New York State Supreme Court (“Post-Judgment”), payment plans for Class 1 and 2 properties require a 50 percent down payment. Note: The payment agreement will be canceled if two consecutive payments are missed.
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If you default on your Agreement.
Finance has the ability to permit a defaulted agreement to either be brought up to date or allow a new agreement to be processed. We can also decide if the property can be included in future In-Rem actions and not allow any new agreement to be made. Each case will be decided independently.
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Contact the Installment Unit
Write to:
NYC Department of Finance
Installment Unit
59 Maiden Lane, 25th Floor
New York, NY 10038
Additional Information
Payment Plans (General)
Environmental Control Board Payment Plans
