Tax Lien Foreclosure

Our New Jersey attorneys prosecute and defend real estate tax foreclosure cases on behalf of both investors and property owenrs. 

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, or otherwise the municipality may sell a second tax certificate that would then have priority over the previousl tax sale certificatet.

Unlike regular mortgage foreclosure cases, in tax foreclosure cases the property owner loses title to the property once a final judgment is entered.  In other words, there is no sheriff's sale. Althouth the property owner is given a right of redemption, that right is lost once a final judgment is entered.

Vacating Tax Foreclosure Judgments

Over the years we have helped many property owners save their homes and commercial buildings from tax foreclosures. In several cases we were able to vacate final judgments and return ownership of properties to our clients, including a recent case where we succeeded in saving our client's multi-million dollar luxury penthouse condominium situated on the Jersey City waterfront. 

Contact one of our New Jersey tax sale foreclosure attorneys today and find out how we can help.

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