Redemption & More Information
Redemption can only be made through the Collector. This ensures that the lien holder receives his legally owed monies, and protects the redeeming party from being overcharged. Effective 2010, such requests must be in writing. Also, in a calendar year, two requests by the same party for the same lien are provided gratis. After the second request, the Township may, by ordinance, charge a $50 fee for any further requests. If a lien holder requests a redemption statement, the Township may, again by ordinance, charge a $50 fee to the lien holder.
The owner of a property, or a legally interested party (mortgagee, heir, etc), may redeem at any time as long as foreclosure has not begun. The legally interested party must prove to the Collector, upon request, their right to redeem. Under NJSA 545, 1954 "Except as hereinafter provided, the owner, his heirs, holder of any prior outstanding tax lien certificate, mortgagee, or occupant of land sold for municipal taxes, assessment for benefits pursuant to RS 54:5-7 or other municipal charges, may redeem it at any time until the right to redeem has been cut off ..." "...by paying to the Collector... the amount required for redemption..."
Lien Holder Receives
The lien holder is entitled to receive his original investment, the interest on the certificate, any subsequent taxes paid plus the interest accrued on them, the amount legally allowed by the state for search and recording (if recorded), and a redemption penalty. This penalty is assessed at time of redemption only - a foreclosure does not receive this penalty. The certificate must be $200 or greater; penalties are 2% ($200 - $5,000), 4% ($5,001 - $10,000), or 6% (over $10,000). The penalty is only assessed on the original certificate.
Redemption can only be made for the entire amount outstanding. The Collector prepares a statement computing interest to the next Committee meeting. Payment must be made prior to the meeting date. Payment is only remitted to the lien holder upon receipt of the endorsed certificate.
If no one bids on the property, the Township assumes the lien at an interest rate of 18%. The Township may bid on properties as well.
Lien holders have no legal right to exercise rights of ownership, seek entry, inspect property, or act as landlord. They should not attempt to communicate with the owner unless it is through the Collector's office.
If a resident has filed for bankruptcy prior to the sale, the Collector must obtain a stay in order to sell the lien. If a resident files for bankruptcy after sale and before foreclosure, any premium due date would be extended for each day that the foreclosure action is precluded by the filing (effective January 2010).
Also effective 2010, the Collector may, at her discretion, remove any total delinquency (including costs) of less than $100 from the tax sale. This property may be so exempted for up to 5 years, if the accrued balance remains below $100. All costs remain as a lien upon the property.