Since Covid-19 has hit there is so much uncertainty and many people do not understand the Executive Orders signed by Governor Murphy.
The process with real estate taxes is as follows:
New Jersey law requires that all 566 municipalies hold at least one tax sale per year. For example, a tax sale is held annually each year in Willingboro Township for unpaid prior taxes and municipal charges.
Real estate taxes are due each year on February 1, May 1, August 1 and November 1.
At the tax sale, you do not lose your home. However, investors buy what is known as a tax sale certificate which is a lien on your property and they can earn up to 18% interest which is a very good investment.
After the investor purchases the tax sale certificate, taxes continue to accrue on your property. If the purchaser does not pay the additional taxes, then another tax sale certificate will be sold at the next tax sale.
The lien holder of the tax sale certificate has two years to begin foreclosure after obtaining the tax sale certificate.
With normal foreclosures, there is a sheriff sale process before your home can be lost. Under the present pandemic, there are only sheriff sales scheduled for vacant properties.
However, with tax sale certificates you cannot make a payment arrangement with the tax sale certificate holder and foreclosures are proceeding. The only thing that is stayed is evictions. Once a judgment of foreclosure occurs that property is transferred and you no longer own your home. Therefore, you must not delay and file bankruptcy immediately when you are behind on real estate taxes or municipal charges.
It is imperative that you do not delay or try to save up enough money to pay the tax sale certificate holder. We had one prior client who consulted us and never filed the bankruptcy and the deed was transferred since she thought she could save up to pay off the tax sale certificate. There is case law where a debtor can try to show the transfer was a preference or fraudulent transfer, but these are very complex and expensive legal issues with no guarantee. The best procedure is to not delay and file the chapter 13 as soon as possible way before there is a chance the deed can be transferred to the tax sale certificate holder.
If you are behind on real estate taxes, municipal charges or any other debt, the first thing is to go to our website at www.bankruptcywithcare.com and see how we have helped over seven thousand people over the last 36 years and then schedule your free initial consultation.
If you want to save your home, then you must file for a chapter 13 bankruptcy. If you do not want to save the home and qualify, you can file for a chapter 7 bankruptcy.
The whole purpose of the bankruptcy code is to help honest debtors, who through unforeseen circumstances, have gotten into a horrible financial situation and they need a fresh start. What can be more of an unforeseen circumstance than this horrible pandemic that has hit the entire world.
If you are behind on real estate taxes or municipal charges, or have any other financial problems, Taieblaw is here to help.
Things are hard enough now and you don’t want creditors to pursue you while everyone is struggling.
If you are sick, stressed out, or losing sleep over your debt, we can help you get a fresh start by filing a bankruptcy for you. For more information go to www.bankruptcywithcare,com or call us at (856)235-4994.
AGAIN, PLEASE NOTE WE ARE OPEN FOR BUSINESS TO HELP ANYBODY WHO IS IN FINANCIAL DISTRESS AND CAN HELP YOU EITHER IN OFFICE OR VIRTUALLY.
Steven N. Taieb,Esquire has been a south jersey bankruptcy attorney for 36 years and is board certified in consumer bankruptcy law by the American Board of Certification which is accredited by the American Bar Association.
We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy Code.