The Tax Collector is required by state law to hold a tax sale each year for the prior year’s unpaid municipal charges. Municipal charges include, but are not limited to, water, sewer, trash, maintenance liens and property taxes. YOUR PROPERTY IS NOT SOLD AT THE TAX SALE; A LIEN IS PLACED UPON IT.
A Tax Sale List is published in the newspaper for four (4) weeks prior to the tax sale and the cost of advertising is added to the delinquent amount owed. The amounts due may be paid in full up to the date of the sale.
The lienholder pays the debt owed to the municipality by the assessed owner of the property in return for a guaranteed interest rate on the amount paid when the lien is redeemed.
The tax sale certificate that is issued is the detailed receipt of what the lienholder purchased at the tax sale; most lienholders record their liens at the Burlington County Clerk’s Office to insure redemption of the lien if the property is sold. Clear title cannot be issued for a property with recorded liens on it.
At the tax sale most liens are sold to a third party. On occasion there is not a third party interested in purchasing the lien and the lien is struck off to the municipality. If a lien is held by Bordentown City, they may begin foreclosure proceedings six months from the date of the tax sale if the lien has not been redeemed.
If a lien is purchased by a third party, they have a right to begin foreclosure proceedings two years from the date of the tax sale. The lienholder also has the right to pay any municipal charges that are billed to the property, once they are delinquent and add them to the lien balance. Liens must be redeemed in full with guaranteed funds. (i.e. cash, certified check or money order)
Assessed owners of property are ultimately responsible for their municipal charges even if you are escrowing for taxes through your mortgage company. New Jersey state law is quite clear; YOU DO NOT NEED TO BE IN RECEIPT OF A BILL TO BE RESPONSIBLE FOR PAYING IT.
City of Bordentown