New Jersey Tax Lien Certificates
In New Jersey tax lien certificates are sold at each of the 566 municipal Tax Sales. Tax delinquent properties are advertised in a local newspaper prior to the municipal tax sale. Anyone wishing to bid must register preceeding the tax sale. Bids begin at eighteen (18) percent annually, compounded daily, however through competitive bidding interest can be bid down from eighteen (18) percent to zero (0) percent.
If the interest is bid down to zero (0) percent, then a "premium," bid commences. The bidder with the lowest interest rate or the greatest "premium" bid wins the right to purchase the tax lien certificate. It is important to note that the premium amount does not earn interest.
The winning bidder must record the purchase of the tax lien certificate in the County Clerk's Office within 90 days of the purchase or risk losing their interest.
Taxes continue to accrue on the property after the sale of the certificate. Bidders have the option to pay these subsequent taxes; if they are not paid, a tax sale certificate will be sold at the next tax sale. Any subsequent certificate issued will be paramount to any prior certificate. Subsequent taxes paid by the lien holder earn interest at the rate set by the municipality.
After two (2) years, the tax lien certificate owner can initiate proceedings in Superior Court to foreclose on the property. If foreclosure is perfected, then the name on the deed is changed to that of the tax lien certificate owner who can then take possession of the property.
If the tax lien certificate is redeemed by the delinquent property owner prior to foreclosure, the tax lien certificate earns a redemption penalty at the rate of 2, 4, or 6 percent, depending on the amount of the original tax lien certificate, in addition to any interest rate on the certificate.
According to New Jersey Law, on tax lien certificate greater than $200, a penalty of 2% is added to the tax lien certificate, tax lien certificates greater than $5,000 bring a 4% penalty and tax lien certificates greater than $10,000, a 6% penalty is added. Some municipalities include an additional 6% year end penalty on tax lien certificates over $10,000 and could raise the penalty to as much as 12%.
If the tax lien certificate is not redeemed, or the property foreclosed within the five (5) year period, then the premium amount escheats to the municipality.
Tax Sale Type: Tax Lien Certificates Sec. 54:5-46 )
Amount to Redeem: According to (Sec. 54:5-32 ) 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...'.
In addition, according to (Sec. 54:5-61 ) When the tax title certificate amount shall exceed the sum of two hundred ($200) 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.
Furthermore, according to (Sec. 54:5-62 ) 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.
New Jersey Tax Sale Discussion
Below you will find a collection of the latest user questions and comments relating to Tax Lien Certificates New Jersey.
Counties located in New Jersey
The following is a list of counties located in the state of New Jersey.
Tax Lien Certificates for properties located in the following counties are sold at New Jersey county tax sales.
Learn more about each county's individual tax sale process by clicking on the name of the county for which you are interested from the list below:
|County / Municipality:||Auction Type:||Population:|
|Atlantic County, NJ||Tax Lien Certificates||252,552|
|Bergen County, NJ||Tax Lien Certificates||884,118|
|Burlington County, NJ||Tax Lien Certificates||423,394|
|Camden County, NJ||Tax Lien Certificates||508,932|
|Cape May County, NJ||Tax Lien Certificates||102,326|
|Cumberland County, NJ||Tax Lien Certificates||146,438|
|Essex County, NJ||Tax Lien Certificates||793,633|
|Gloucester County, NJ||Tax Lien Certificates||254,673|
|Hudson County, NJ||Tax Lien Certificates||608,975|
|Hunterdon County, NJ||Tax Lien Certificates||121,989|
|Mercer County, NJ||Tax Lien Certificates||350,761|
|Middlesex County, NJ||Tax Lien Certificates||750,162|
|Monmouth County, NJ||Tax Lien Certificates||615,301|
|Morris County, NJ||Tax Lien Certificates||470,212|
|Ocean County, NJ||Tax Lien Certificates||510,916|
|Passaic County, NJ||Tax Lien Certificates||489,049|
|Salem County, NJ||Tax Lien Certificates||64,285|
|Somerset County, NJ||Tax Lien Certificates||297,490|
|Sussex County, NJ||Tax Lien Certificates||144,166|
|Union County, NJ||Tax Lien Certificates||522,541|
|Warren County, NJ||Tax Lien Certificates||102,437|
Tax Lien University, Inc. is an educational organization, and individual performance depends upon the individual skills, time availability, and dedication of each student. Testimonials included may not represent typical results. Unique experiences and past performances do not guarantee future results. Tax Lien University, Inc. its owners, employees, and affiliates do not give investment or financial advice and are not licensed as brokers by or registered as advisors with any agency. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.
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Tax Lien Certificate States
Research all fifty (50) states to determine which offers the right interest rate, redemption period, and more.
Tax Lien Certificate Reports
Below is a list of free articles on how to profit with tax lien certificates, tax deeds, and more.
- What are Liens
- The Effects of Liens on Title
- How Lien Priority is Established
- What are Tax Lien Certificates
- How to Buy Tax Lien Certificates
- Learn the Tax Sale Bid Methods
- Buy Tax Liens with a Business
- Over the Counter Tax Liens
- How to get the Tax Sale List
- Profits with Tax Sale Overages
- Tax Lien and Tax Deed States
- Tax Lien Profit Calculator
The Rule of 72 Calculator
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Tax Lien University Reviews
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