All Roll Calls
Yes: 115 • No: 0
New JerseyA3772220th Legislature (2024-2025)HouseWALLET
Revises process for property tax lien holder to foreclose right to redeem a property tax lien; allows property owner to protect remaining equity.
Sponsored By: Yvonne Lopez (Democratic), McCann Stamato, Barbara, Angela V. McKnight (Democratic), William B. Sampson IV (Democratic), Brian P. Stack (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 1 benefits, 3 costs, 3 mixed.
Abandoned properties face foreclosure without waiting
A tax-lien holder or town can seek foreclosure at any time when a property meets the legal definition of abandoned. This covers property abandoned at the tax sale or afterward. If officials do not provide a requested abandonment certification, the holder can submit qualified evidence to the court. That evidence must include a report and sworn statement from a licensed or qualified person, with copies sent to officials. The court decides whether the property is abandoned, allowing foreclosure without the usual waiting period.
Foreclosure fees add to owners' payoff
Before filing, documented expenses incurred after the required notice can increase the amount needed to pay off a tax lien. These include searches capped at $350, attorney fees capped at $150, mailing costs, and municipal calculation fees. After filing, the balance can include $2,500 in attorney fees and specified documented expenses. Extra fees or expenses for exceptional cases, litigation, or bankruptcy require court approval. A town ordinance can authorize a calculation fee of up to $50 charged to the lien holder; the request must use the notice date, and the town and collector are not liable for calculation errors.
Lien holders claim costs before owners
When owners or heirs request a sale, lien holders get a first claim for administrative costs: 10% of surplus, capped at $5,000. Holders can also ask the court to recover unpaid costs and reasonable attorney fees from surplus funds. An attorney must record a statewide judgment lien for outstanding attorney fees. In town-run foreclosures, court-approved sale costs and reasonable attorney fees increase the payoff amount and receive priority against surplus when unpaid. Special expense-reimbursement rules cover municipal cases with one certificate and abandoned-property foreclosures, leaving less surplus potentially available to owners.
Owners can request sales to protect equity
Owners or heirs in covered New Jersey tax-lien foreclosures can request a sale in writing before final judgment. They can request a court sale or a sheriff's online auction; without an established online auction, only a court sale is available. Beginning July 10, 2024, this right also covers town-run foreclosures of abandoned property. Money left after the required debt, fees, and costs goes to the court for distribution, and owners must claim surplus through court. The sale price determines market value; no bids above the redemption amount create a presumption of no equity. Without a timely request, owners lose covered equity claims; no bids followed by the lien holder taking title also bars an equity claim against that holder. The law does not reopen foreclosures with final judgments entered before enactment.
Owners get notice of equity rights
Private plaintiffs seeking specified foreclosure fees must give people entitled to redeem at least 30 days' written notice before filing. The notice states the payoff amount and, except for abandoned property, explains the right to request a sale. In covered non-abandoned-property cases, towns and lien holders must prominently explain that right and its deadline. Owners in covered municipal or private cases pending July 10, 2024, must receive notice by regular and certified mail. Owners or heirs in those pending cases must notify the court by the day before final judgment to obtain a sale.
Abandoned-property repairs can increase owners' debt
Lien holders can enter legally abandoned property after sending the owner certified-mail notice with a return receipt requested. They can repair conditions that harm public health, safety, or welfare, or materially reduce the property's value. The holder can add repair and cleanup costs to the unpaid lien balance. Those costs earn interest at the statutory rate for later liens, increasing the amount owed.
Tax-lien buyers face premium refund deadlines
A tax-lien buyer gets the sale premium back when the lien is redeemed; otherwise, it generally becomes town money after five years. Each day an owner's bankruptcy prevents foreclosure extends that period. For a court sale or sheriff's online auction, a refund requires sending the sale order to the sheriff within five years. No premium refund is available if the certificate holder or its assignee wins the sale. Premiums scheduled to become town money in 2024 receive a one-year extension.
Sponsors & Cosponsors
Sponsors
Yvonne Lopez
Democratic • House
McCann Stamato, Barbara
Affiliation unavailable
Angela V. McKnight
Democratic • Senate
William B. Sampson IV
Democratic • House
Brian P. Stack
Democratic • Senate
Cosponsors
Carmen F. Amato Jr.
Republican • Senate
Atkins, Reginald W.
Affiliation unavailable
Rosaura Bagolie
Democratic • House
Renee C. Burgess
Democratic • Senate
Margie Donlon M.D.
Democratic • House
Vin Gopal
Democratic • Senate
Dan Hutchison
Democratic • House
Paul Kanitra
Republican • House
Gregory P. McGuckin
Republican • House
Carol A. Murphy
Democratic • House
Mu�oz, Nancy F.
Affiliation unavailable
Luanne M. Peterpaul Esq.
Democratic • House
Ramirez, Jessica
Affiliation unavailable
Verlina Reynolds-Jackson
Democratic • House
Gabriel Rodriguez
Democratic • House
Shanique Speight
Democratic • House
Sterley S. Stanley
Democratic • House
Swift, Claire S.
Affiliation unavailable
Benjie E. Wimberly
Democratic • Senate
Roll Call Votes
House vote • 6/28/2024
3RDG FINAL PASSAGE
Yes: 75 • No: 0 • Other: 2
Senate vote • 6/28/2024
3RDG FINAL PASSAGE
Yes: 40 • No: 0
Actions Timeline
Approved by Governor — P.L.2024, c.39.
7/10/2024GovernorPassed Senate, PBH — (40-0)
6/28/2024SenateSubstituted for S2334 (2R)
6/28/2024SenateReceived in Senate, SWR, 2nd Reading in Senate
6/28/2024SenatePassed Assembly — (75-0-2)
6/28/2024HouseREP/ACA, 2nd Reading in Assembly
6/24/2024HouseReported, Referred to Assembly Appropriations Committee
6/24/2024HouseIntroduced, 1st Reading in Assembly, Referred to Assembly State and Local Government Committee
2/22/2024House
Bill Text
Version PL2024
9/10/2024
Version AL2024
7/31/2024
6/24/24 1R
7/2/2024
As Introduced
7/1/2024
6/25/24; as introduced
6/25/2024
Assembly Appropriations Substitute (6/24/24)
6/25/2024
Assembly State and Local Government Substitute (6/24/24)
6/25/2024
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