The bill revises the foreclosure process for property tax lien holders, ensuring that property owners can protect their remaining equity. Key amendments include a requirement for tax collectors to refund premium payments to the holder of the tax sale certificate if the certificate is redeemed through a judicial sale or Internet auction within five years. It also allows property owners or their heirs to request a judicial sale or auction within 45 days of being served with a foreclosure complaint, thereby preserving their equity in the property. Furthermore, the bill mandates that the holder of the tax sale certificate must inform property owners of their rights during the foreclosure process.

In alignment with the U.S. Supreme Court decision in *Tyler v. Hennepin County, Minnesota*, the bill clarifies that surplus funds from a judicial sale will be available to property owners or their heirs after the payment of the tax sale certificate holder and associated costs. It specifies that if the holder of the tax sale certificate cannot be located after five years, the unclaimed funds will revert to the municipality. The legislation is set to take effect immediately and will apply to property tax lien foreclosure complaints filed on or after May 25, 2023, without affecting any foreclosure actions with a final judgment entered prior to its enactment.

Statutes affected:
Introduced: 54:5-97.1, 54:5-104.59, 54:5-104.64