The US Supreme Court just ruled in 
Tyler v. Hennepin County that the government cannot take your property for tax debts and keep what is left over. New Jersey is a little more complicated. While local governments can take possession of properties, they can also auction off the debt to third parties. These third parties can collect high interest rates and penalties. If that debt is not paid off, they can simply take the property and do whatever they want with it, including selling it off and keeping the rest of the money.
But not anymore. Now, if you have a tax burden on a piece of real property you have to be paid the difference between the amount of the tax and the value/what it sold for. There are a few kinks to be worked out while local governments and investors realize that their days of stealing people’s houses for pennies on the dollar are over. But those kinks will be worked out.
If you have a property that is currently in foreclosure due to unpaid taxes or if your property has already been taken because of a tax foreclosure, please contact our office as soon as possible.
* This post is for educational purposes and should not be interpreted as legal advice.
Christopher T. Campbell is an experienced New Jersey attorney focused on assisting homeowners with asset and surplus fund recovery.