New Jersey Assembly Bill A3772

New Jersey Assembly Bill A3772 revises the foreclosure process for property tax liens to better protect property owners. The bill requires tax lien holders to provide at least 30 days’ notice to parties with redemption rights before filing a foreclosure complaint. This notice must include the redemption amount and inform owners that they can request a judicial sale or Internet auction of the property to preserve any remaining equity.

Key provisions include:

• The notice must be sent by certified mail and filed with the municipal tax collector.
• Property owners can demand a judicial sale or Internet auction within 45 days of receiving the foreclosure complaint.
• If owners choose this route, tax lien holders can recover costs and attorney fees through the sale proceeds.
• Municipalities can charge lien holders a fee (up to $50) for calculating redemption amounts.
• The bill also adjusts provisions for equitable apportionment of foreclosure costs among affected parcels.

Legislative Status:

• Introduced and referred to the Assembly State and Local Government Committee on February 22, 2024.
• Passed the Assembly on June 28, 2024 (75-0-2).
• Passed the Senate on June 28, 2024 (40-0).
• Approved and enacted as P.L.2024, c.39 on July 10, 2024​.

Key Takeaways:

1. Enhanced notice requirements for property owners prior to foreclosure.
2. Option for judicial sale or Internet auction to preserve property equity.
3. Recovery of foreclosure costs and attorney fees for tax lien holders.
4. The legislative process was completed with the bill enacted on July 10, 2024.

For more information or to read the full legislation, please click here: 3772