Legal Question in Tax Law in New Jersey

Have a two year old tax lien. Now what?

I have a two seperate municipal tax liens for the same one lot and block. The lot is not financed through a bank as per title search. I know I can foreclose if I choose after having the two years worth of liens, but the lot is useless for development since it has wetlands. I chose to let it go to tax sale this year (lien #3). Someone else got the lien at the sale (lien 3), I have the original 2 on the property. If he forcloses or the property owner pays the back taxes, do I get paid or is all my investment lost since I am no longer 1st in line? What is the heirarchy process? Is there anyway to recoupe my losses? Can I contact the current lien holder to ''sell'' him my liens? Thank you for your prompt response!


Asked on 9/21/02, 9:31 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Have a two year old tax lien. Now what?

Tax liens are considered secured liens against the property, only subordinate to prior in time liens. So, if there is no mortgage ahead of you in time, your 2 liens should be the first prioity liens on the property, ahead of the third lien. If the taxes are ever paid, you will be paid first. Likewise, if the more remote lienholder does the foreclosure, you get paid also, as he must clear your lien to get good title. All you need to do is go to the foreclosure sale and bid the amount you are owed. He must bid higher to get the land. You might also want to check with the municipal authorities where the land is located to see if they may want to purchase the land under Green Acres to preserve it as open space. They may need it for a future land swap with Green Acres if they desire to use other municipal owned land for their own development.

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Answered on 9/23/02, 9:42 am


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