TAX SALE INFORMATION

(NJSA 54:5-1)

 

BIDDING:

When bidding on a property at tax sale, you are bidding the interest return on the amount of the sale if the lien is redeemed.  Bidding starts at a maximum of 18% and decreases with each bid.  It may decrease to 0% at which time premium may be bid.  Premium is a dollar amount paid to the Township, which is held in  escrow, and is then returned to the lien holder if redemption is made within 6 years.  The bidding of premium increases with each bid.  If there are no bids on a property, the lien is automatically sold to the Township at 18%.

 

SUCCESSFUL BIDDING:

                        The successful bidder pays to the Township the amount of the

                        sale/sales and any premium before the close of the sale.  Unless

                        previously authorized by the Collector, payment must be made

                        by Certified Check, Cashier Check, Treasurer Check or Cash. 

                        NO PERSONAL CHECKS WILL BE ACCEPTED.

 

LIENHOLDER RESPONSIBILITY:

                        After the sale, a Tax Sale Certificate will be issued to the lien holder

                        within 10 days.  It is the lien holder’s responsibility to record this

                        certificate with the Clerk of the County of Cape May.  An affidavit

                        of recording fee must be filed with the Collector to recover this

                        expense at time of redemption.

 

                                    The current taxes due are not included in the Amount of Sale. Upon receipt of Tax Sale Certificate the Lien holder may pay the current taxes and interest due.  The interest rate return upon redemption is the same as set forth by Township Ordinance.  At this time, the interest rate is 8% up to $1,500.00 and 18% on amounts over $1,500.00.   An affidavit of subsequent taxes paid must be filed with the Collector to recover this expense at time of redemption.

 

                        It is the responsibility of the Lien holder to file with the Collector an

                        affidavit of all actions or expenses.

                        (NJSA 54:5-60, 54:5-61, 54:5-62, 54:5-63) 

                        The limits recoverable are set forth in the Tax Sale Law.

 

                        If redemption is not made within two years from the date of the

                        Tax Sale, the Lien Holder may start to foreclose the property.

 

ATTENTION:

                                    Any financial investment with a high return can also carry a substantial risk.  All potential Lien Holders should be familiar with Tax Sale Law and be aware at what they are buying.  If the lien is not redeemed the expense of foreclosure can be costly.