Tax Lien Certificates and Tax Deed Sales in New Jersey NJ


There are 21 Counties in New Jersey. It became the 3rd state on December 18, 1787. The state motto is "Liberty and Prosperity".

Currently, the maximum interest rate being offered to all New Jersey tax lien certificate investors is 18% per annum and a two year right of redemption. Plus, depending on the amount of the certificate, there is a penalty ranging from 2% to 6%.

Summary: Local tax collectors (municipal level) conduct public oral bid tax sale auctions to sell properties having delinquent real estate property taxes (Sec. 54:5-19, Sec. 54:5-31). The property shall be struck off and sold to the bidder who offers to pay the amount of such taxes, assessments or charges, plus the highest amount of premium. Whenever the governing body of a municipality shall by resolution determine that a particular parcel or parcels of real estate, scheduled to be sold at public auction pursuant to the tax sale law, would be useful for a public purpose, it may authorize and direct a municipal official to attend the auction and bid for such parcel or parcels at such sale on behalf of the municipality in the same manner as any other bidder. (Sec. 54:5-30.1). If there are no bidders, the property will be stricken off and sold to the municipality (Sec. 54:5-34).

Law: New Jersey Revised Statutes, Title 54, Subtitle 2, Chapter 5, "Tax Sale Law."

Tax Sale List: Use New Jersey Tax Sale Lists to search for New Jersey tax lien certificates to buy or bid on. Generally most New Jersey tax sale lists will identify the property owner, parcel number, legal description and the amount due. In some cases, the tax sale list may include the tax collectors assessed value of the property.

Contact: Local Tax Collector. More specifically, when unpaid taxes or any municipal lien, or part thereof, on real property, remains in arrears on the 11th day of the eleventh month in the fiscal year when the same became in arrears, the collector or other officer charged by law in the municipality with that duty, shall enforce the lien by selling the property in the manner set forth in this article, provided that the sale is conducted no earlier than in the last month of the fiscal year. (Sec. 54:5-19).

Interest Rate: 18% per annum and 2%-6% penalty depending on the amount of the certificate (Sec. 54:5-61.). More specifically, the sale shall be made in fee to such person as will purchase the property, subject to redemption at the lowest rate of interest, but in no case in excess of 18% per annum. If at the sale a person shall offer to purchase subject to redemption at a rate of interest less than 1%, he may, in lieu of any rate of interest to redeem, offer a premium over and above the amount of taxes, assessments or other charges, as in this chapter specified, due the municipality, and the property shall be struck off and sold to the bidder who offers to pay the amount of such taxes, assessments or charges, plus the highest amount of premium. (Sec. 54:5-32).

(Sec. 54:5-61.) The holder of the tax title shall be entitled to fees and expenses in ascertaining the persons interested in the premises sold, but such fees and expenses shall not exceed in all the sum of twelve dollars, and the holder shall also be entitled for his expenses, to such sums as he may have actually paid for recording the certificate. In addition, and upon compliance with the provisions of R.S.54:5-62 the holder shall also be entitled for his expenses, to such sums as he may have actually paid for necessary advertising in a newspaper under this chapter and fees for services of notices necessarily and actually served. Such fees and expenses shall be separate, apart from and in addition to those fees permitted under section 7 of P.L.1965, c.187 (C.54:5-97.1) and R.S.54:5-98. Upon redemption in accordance with R.S.54:5-58, R.S.54:5-59 and R.S.54:5-60 the holder of the tax title shall be entitled to collect from the owner or other persons having a right of redemption pursuant to R.S.54:5-54, additional sums in accordance with the following schedule: When the tax title certificate amount shall exceed the sum of two hundred dollars, the holder, upon redemption of the tax title shall be entitled to collect from the owner or other person having an interest in the lands an additional sum equal to two per cent of the amount so paid for the tax title certificate.

When the tax title certificate amount shall exceed the sum of $5,000, such additional sum shall be equal to 4% of such amount paid; and when the tax title certificate amount exceeds $10,000, such additional sum shall be equal to 6% of such amount paid. This section shall also apply to all existing tax title certificates held by municipalities on the effective date of P.L.1991, c.75.

Auction Type: Tax Lien Certificates (Sec. 54:5-46). Public auction the sale shall be made in fee to such person as will purchase the property, subject to redemption at the lowest rate of interest. (Sec. 54:5-32).

Bidding Procedure: The sale shall be made in fee to such person as will purchase the property, subject to redemption at the lowest rate of interest, but in no case in excess of 18% per year (Sec. 54:5-32).

Costs: The officer conducting a tax sale shall collect and pay into the treasury of the municipality a fee for all costs incurred by the municipality in holding the sale. The amount of the fee so paid shall be 2% of the existing lien as stated in R.S. 54:5-19 and R.S. 54:5-2, but not less than $15.00 and not more than $100.00 for each parcel sold. The fee shall form part of the tax lien and be paid by the purchaser at the tax sale. If a tax lien on a specific parcel is not sold at a sale, the fee for the sale shall be added to the amount due to the municipality and shall form part of the lien and be paid by a purchaser at a subsequent tax sale. (Sec. 54:5-38).

Redemption Period: Except as hereinafter provided, the owner, his heirs, holder of any prior outstanding tax lien certificate, mortgagee, or occupant of land sold for municipal taxes, assessment for benefits pursuant to R.S.54:5-7 or other municipal charges, may redeem it at any time until the right to redeem has been cut off in the manner in this chapter set forth, by paying to the collector, or to the collector of delinquent taxes on lands of the municipality where the land is situate, for the use of the purchaser, his heirs or assigns, the amount required for redemption as hereinafter set forth. When the municipality is the purchaser of a tax sale certificate, the municipality, or its assignee or transferee, may, at any time after the expiration of the term of six months from the date of sale, institute an action to foreclose the right of redemption. Except as provided in subsection a. of section 39 of P.L.1996, c.62 (C.55:19-58), for all other persons that do not acquire a tax sale certificate from a municipality, an action to foreclose the right of redemption may be instituted at any time after the expiration of the term of two years from the date of sale of the tax sale certificate. On instituting the action the right to redeem shall exist and continue until barred by the judgment of the Superior Court. (Sec. 54:5-54, Sec. 54:5-86).

Deed assigned at Foreclosure to: Tax Lien Certificate purchaser. More specifically, The Superior Court, in an action to foreclose the right of redemption, may give full and complete relief under this chapter, in accordance with other statutory authority of the court, to bar the right of redemption and to foreclose all prior or subsequent alienations and descents of the lands and encumbrances thereon, except subsequent municipal liens, and to adjudge an absolute and indefeasible estate of inheritance in fee simple, to be vested in the purchaser. The judgment shall be final upon the defendants, their heirs, devisees and personal representatives, and their or any of their heirs, devisees, executors, administrators, grantees, assigns or successors in right, title or interest and no application shall be entertained to reopen the judgment after three months from the date thereof, and then only upon the grounds of lack of jurisdiction or fraud in the conduct of the suit. Such judgment and recording thereof shall not be deemed a sale, transfer, or conveyance of title or interest to the subject property under the provisions of the "Uniform Fraudulent Transfer Act," R.S.25:2-20 et seq. In the event that any federal statute or regulation requires a judicial sale of the property in order to debar and foreclose a mortgage interest or any other lien held by the United States or any agency or instrumentality thereof, then the tax lien may be foreclosed in the same manner as a mortgage, and the final judgment shall provide for the issuance of a writ of execution to the sheriff of the county wherein the property is situated and the holding of a judicial sale as in the manner of the foreclosure of a mortgage. (Sec. 54:5-87).

Notes:

 

Counties:


County:  Auction Type:  Bidding Type:  Population: 
Atlantic  Tax Lien Certificate  Bid Down 252,552
Bergen  Tax Lien Certificate  Bid Down 884,118
Burlington  Tax Lien Certificate  Bid Down 423,394
Camden  Tax Lien Certificate  Bid Down 508,932
Cape May  Tax Lien Certificate  Bid Down 102,326
Cumberland  Tax Lien Certificate  Bid Down 146,438
Essex  Tax Lien Certificate  Bid Down 793,633
Gloucester  Tax Lien Certificate  Bid Down 254,673
Hudson  Tax Lien Certificate  Bid Down 608,975
Hunterdon  Tax Lien Certificate  Bid Down 121,989
Mercer  Tax Lien Certificate  Bid Down 350,761
Middlesex  Tax Lien Certificate  Bid Down 750,162
Monmouth  Tax Lien Certificate  Bid Down 615,301
Morris  Tax Lien Certificate  Bid Down 470,212
Ocean  Tax Lien Certificate  Bid Down 510,916
Passaic  Tax Lien Certificate  Bid Down 489,049
Salem  Tax Lien Certificate  Bid Down 64,285
Somerset  Tax Lien Certificate  Bid Down 297,490
Sussex  Tax Lien Certificate  Bid Down 144,166
Union  Tax Lien Certificate  Bid Down 522,541
Warren  Tax Lien Certificate  Bid Down 102,437

To report any updates, deletions or additions to the county list, please click here.

Comments:


By Tung Nguyen on Tuesday, September 30th 2008, 8:37 am:
Send me the Tax Lien Certificate


By bob hope on Saturday, October 04th 2008, 1:47 am:
how do you stop or object to a tax lien sale


By Real Estate Community on Tuesday, October 28th 2008, 11:37 pm:
http://www.homesteadbound.com


By Over The Counter Sales on Tuesday, January 13th 2009, 1:48 pm:
Does the towm of Hoboken ever have over the counter tax lien sales????
And if so how can one obtain a copy of the liens that are up for sale?


By Tim C. on Sunday, February 08th 2009, 2:52 pm:
If the tax sales are held by the townships, why do you have the NJ counties listed above?


By Josue Nieves on Monday, February 09th 2009, 1:35 pm:
I can Help you find tax sale auctions in your area for a nominal fee.
josuenieves@earthlink.net


By Doug B on Sunday, February 15th 2009, 9:22 pm:
How do you forclouse on a property after the two year holding period?


By Doug B on Sunday, February 15th 2009, 9:23 pm:
How do you foreclouse after the two year holding period> Ccrommelin@aol.com


By James on Friday, March 13th 2009, 12:00 am:
When do you get your money back after buying tax lien? Is it only when the two year holding period ends?


By Michael S on Monday, June 01st 2009, 12:18 am:
Looking for a knowledgeable NJ attorney to commence the foreclose action, at a reasonable fee, after the 33 day letter is sent.
Seeking an abstracter to do title searches, in Atlantic County, NJ
TLCLLC@YAHOO.COM


By lbirnbaum@laulettalaw.com on Tuesday, July 28th 2009, 10:22 am:
How do you foreclose after the two year holding period


By Ankit Patel on Wednesday, August 05th 2009, 3:45 pm:
In forclosure procedures who comes first, tax certificate holder or mortgage?


By Steve on Thursday, February 18th 2010, 4:41 pm:
When people bid a premium on the lien, what happens with the interest on the basic lien and the premium?


By HENRY on Sunday, June 13th 2010, 12:01 pm:
STEVE,

no interest is paid on the premium nor the lien.

Henry


By henry on Sunday, June 13th 2010, 12:02 pm:
Ankit,

tax certificate holder comes first the mortgage is wiped off.

Henry


By Terry on Tuesday, December 14th 2010, 3:55 pm:
Interesting
However you do not clearly explain as the delinquent property owner after a tax certificate has been auctioned off how you redeem this certificate. Is there a 72 hour cooling off period or how does the property owner redeem, and whom shall his contact be?




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