How New Jersey tax sales work
- Each municipality’s tax collector holds a tax sale for delinquent taxes and certain municipal charges. Investors bid on tax sale certificates, which are liens on the property — not ownership of it.
- The certificate earns interest (up to 18% per year in New Jersey) plus possible penalties and costs, so the amount to clear it grows over time.
- The owner can redeem by paying the full amount through the municipal tax collector. If it isn’t redeemed, the certificate holder can eventually file a foreclosure to bar the right of redemption — generally after 2 years for private holders (sooner for a municipality-held certificate).
How selling resolves a tax lien
- At closing, the title company gets a redemption figure from the tax collector, pays off the certificate and any other liens from the sale proceeds, and you receive the remainder.
- If the house also needs repairs or has other liens (mortgage, judgments, water/sewer), those are handled the same way, all in one closing.
Frequently asked questions
Can I still sell if a tax sale certificate was sold?
Generally yes, as long as the right of redemption hasn’t been foreclosed. The lien is paid at closing.
What if the certificate holder has filed to foreclose?
Time matters. Contact a New Jersey attorney and reach out to us right away.
Where we buy
Cliffwood Beach · Old Bridge · Aberdeen · Lakewood · Toms River · Jackson · Howell · Brick · Freehold · Middletown · Keyport · Long Branch · Asbury Park · Neptune · Manchester
This page is general information about New Jersey processes, not legal or tax advice. Rules change and every situation is different — consult a New Jersey attorney, accountant, or HUD-approved housing counselor about your specific circumstances.