§ 1194-a. Administration of surplus in connection with tax lien sales.
Real property tax liens owned by third parties, including those tax
liens sold pursuant to former title three of article fourteen of this
chapter or pursuant to a special or local law or charter shall only be
enforced in the manner described in this section:

1. Upon written application and the surrender of the tax lien
certificate of sale, a treasurer's deed may be issued vesting in the tax
lien certificate holder an absolute estate in fee, subject to all claims
the taxing jurisdiction or state may have thereon for taxes, liens or
encumbrances, if (a) a New York state licensed real estate appraiser
conducts an appraisal of the property prior to the issuance of the deed
to establish the property's fair market value and (b) the property's
appraised value does not exceed the outstanding amount due to the tax
lien holder. The tax district shall levy the cost of conducting the
appraisal as a lien upon the property to be collected along with any
other pending taxes, liens, or encumbrances; or

2. Notwithstanding any other law to the contrary, after the applicable
redemption period has elapsed, an action to foreclose a tax sale
certificate issued pursuant to former title three of article fourteen of
this chapter or pursuant to a local law or charter may be commenced and
maintained pursuant to this title.

3. Notwithstanding any other law to the contrary, when a tax lien has
been sold to a third party, the lienholder shall send a homeowner
warning notice in the manner provided by section eleven hundred
forty-four of this article at least one hundred eighty days prior to
making application for a treasurer's deed or commencing a foreclosure
proceeding, as the case may be.

4. Notwithstanding the foregoing provisions of this section, in a city
with a population of one million or more, real property tax liens owned
by third parties shall be enforced in the manner provided by the
administrative code of such city.