Any municipal charges for the current fiscal year remaining delinquent on November 11th may be subject to tax sale after November 11th. The tax sale includes delinquent taxes as well as other delinquent municipal charges as dictated by New Jersey statutes.
When a Property is in the Sale
When a property is included in the tax sale, a lien is sold for the amount of the eligible municipal charges together with interest to the date of the tax sale and costs of sale. Interest rates for liens sold may be as high as 18%. Depending on the amount of the lien sold there are additional penalties of 2, 4 or 6% charged.
The lienholder, under certain circumstances, may also be entitled to legal fees as well. Lienholders may pay any subsequent tax or sewer charges and add these charges to the original lien. Interest accrues on the original lien as well as any subsequent charges paid by the lien holder. The sale of a tax lien on a property does not give the purchaser of the certificate any rights of ownership or to trespass on the property. This is acquired by the foreclosure process.
A lienholder may begin to foreclose on the property two years after the purchase of the tax sale certificate. If the certificate was not purchased by an outside lien buyer at the tax sale, the Township would be the lien holder and may begin the foreclosure process in as little as six months from the tax sale date. It is important to recognize that a tax lien may become quite costly to redeem especially as additional charges accrue; therefore, it would be in the best interest of the property owner to try and pay their taxes before the property goes to tax sale and the amounts snowball.
For More Information
For further information on tax liens, you may call the Tax Collector at 732-341-1000, ext. 8342.