New Jersey Tax Lien Sales
In this video we teach about Tax Sale Investing in the State of New Jersey. New Jersey is a tax lien state. In a tax lien state, a priority lien against the property is sold to an investor giving the investor the right to collection the back due taxes and earn interest. In the event this lien does not get paid, the investor could foreclose it to gain ownership of the property. This is different from a tax deed state where the ownership of the property is sold.
- Tax Lien State
- Bid Process: Interest Bid Down, Then Premium Bid
- Premium Bid Winners Receive No Interest on Initial Investment
- Lien Owners can buy subsequent taxes and receive 8-18%, plus 2/4/6% penalty
- Two Year Redemption Period
- Premium Amount is returns is redeemed, but escheats to county if lien is foreclosed.
- Sales Handled by Municipalities, Not Counties
New Jersey Counties & Populations:
1 Bergen County 948,406
2 Middlesex County 842,798
3 Essex County 808,285
4 Hudson County 691,643
5 Monmouth County 626,351
6 Ocean County 597,943
7 Union County 563,892
8 Passaic County 512,607
9 Camden County 510,719
10 Morris County 499,693
11 Burlington County 448,596
12 Mercer County 374,733
13 Somerset County 335,432
14 Gloucester County 292,206
15 Atlantic County 269,918
16 Cumberland County 152,538
17 Sussex County 141,682
18 Hunterdon County 125,059
19 Warren County 106,798
20 Cape May County 93,553
21 Salem County 62,792