Tax Lien Foreclosure

Our New Jersey attorneys represent businesses and individuals in tax sale foreclosures. 

Tax Lien Certificates are rights to collect taxes and interest from municipal real estate tax assessments. The certificate is not a Deed  or a right to the property.   In order to actually own the property the Certificate holder must start a special lawsuit to "foreclose" the rights to the property.

In the State of New Jersey, the general rule for tax lien priority is the first filed document has the greater right. Therefore, a previously recorded federal mortgage has priority over subsequent liens recorded against the property with one exception - when a tax lien certificate is filed the tax lien becomes superior to all other liens.   However, state tax liens which are recorded before a tax lien certificate are afforded higher priority    Tax certificates also have priority over federal tax liens.

Most states require a lengthy wait from the purchase of the tax lien certificate to the right to foreclose.  In New Jersey, the waiting period is two (2) years for private investors.   During this 2-year period and during the foreclosure case the investor must pay all the property taxes assessed by the municipality.    Unlike a regular mortgage foreclosure case , in tax foreclosure cases the property owner loses title to the property once a final judgment.

Contact one of our New Jersey tax sale foreclosure attorneys today.