New Jersey Property Tax Foreclosure, Tax Sales and Foreclosure

 In General Tax Questions

The following are some Frequently Asked Questions About Delinquent Property Taxes, Tax Sales and Property Tax Foreclosure

Q: What is a Tax Sale Certificate?

A: Tax Sale Certificate is a lien on a piece of property. The lien is then sold by the local municipality at an auction to third party bidders like investment funds and investors.

Q: If a Tax Certificate is Sold on My Property, Can I Lose My Home?

A:  Yes – After two years, a lien holder can begin proceedings in Superior Court to foreclose on the property. If foreclosure is completed, a final judgement is then entered and the property belongs to the lien holder who can then take possession of the property.

Q: Are Tax Sale Foreclosures and Mortgage Foreclosures Different?

A: Yes   Unlike Mortgage Foreclosure, in most cases proceedings to foreclose a tax sale certificate are not followed by a public sale.  Nor is it followed by deed from a sheriff or other public official. The final judgment bars rights of redemption. This judgment can be recorded immediately and has the legal effect of vesting the tax certificate holder with “an estate in fee simple, in the lands described therein, absolute and free and clear of all liens and encumbrances in accordance with the terms of said judgment.” Once a final judgement is filed and recorded, any equity you have will be removed.

If you are facing a tax foreclosure please contact us at Westmarq 732-630-2381

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