What is Tax Sale?
Prior to the day of sale; the tax collector has responsibilities set by the State of New Jersey Statute N.J.S.A 54:5
1) All homeowners are notified of pending sale (Tax Sale Notice), and the amount due to stay out of tax sale. Due to changes in the NJ State Tax Sale Law, the tax collector must create the tax sale list 50 days prior to the sale, and all charges on that list together with cost of sale must be paid to stay out of sale.
2) Copies of the tax sale notice must be advertised one time in each of the 4 weeks preceeding the tax sale. This ad does not have to run on the same day every week, just one time in four consecutive weeks.
***Collector can make the decision to mail notices in lieu of advertising for 2 weeks out of the 4.
3)A copy of the published tax sale notice is to be mailed to the homeowner ***Failure to mail the notice, or failure for the homeowner to receive notification does not invalidate any tax sale proceeding.
4) Copies of the notice will be posted in 5 public places in the municipality.
5) The 5th week the Tax Collector may hold the Tax Sale
The day of sale, any one that is not the owner of the known property, shall be allowed to bid for a lien against the property.
Tax Sale Certificates:
After the sale the tax collector will issue tax sale certificates to the proper bidders within 10 days of the close of sale. It is the responsibility of the bidder to record their lien with the county after they receive the certificate.
After the tax sale certificate has been issued the lien holder now has the right to pay any delinquent municipal charges that have not gone to sale. These are known as subsequent payments.
The lien holder has the right any time a payment falls delinquent, to pay the charges due to the municipality. These payments are added to the tax sale certificate.
Once a lien has been placed on a parcel, the only persons able to redeem that lien are the owner, his/her heirs, the holder or a prior outstanding tax lien certificate, mortgage, or legal occupant of property sold at a tax sale; and may only redeem until the right to redeem has been cut off.
Payment to redeem a lien must be made in full by cash or certified funds, to the tax collector's office. Once the redemption has occurred; the tax collector will notify the lien holder of payment. They will return the original certificate back to the collector endorsed for cancellation. Upon receipt of the cancelled certificate, the redemption funds will be released to the lien holder.
When the collector receives this cancelled certificate they will send it to the party that redeemed the lien. It is their responsibility to have this lien removed from the property at the county office.
If a lien that has been sold to outside bidder is not redeemed within 2 years from the date of sale, that bidder now has the right to begin foreclosure proceedings.
If a lien that has been struck off to the municipality is not paid, the municipality has the right to an In Rem Foreclosure 6 months after the date of sale.