This bill revises the tax lien foreclosure process in New Jersey to ensure that surplus equity is returned to property owners or their heirs following a foreclosure. It mandates that any surplus funds from a judicial sale or Internet auction must be returned to the original property owner after the tax sale certificate holder has been compensated for redemption moneys, allowable costs, and attorney's fees. Key amendments include the removal of previous language that barred claims to surplus equity and the introduction of provisions that explicitly affirm the right of property owners to receive surplus funds after a foreclosure sale. The bill also clarifies that the holder of the tax sale certificate must conduct a judicial sale or Internet auction to foreclose the right to redeem, ensuring that any surplus funds are returned as part of the final judgment.

Additionally, the bill requires the appointment of a guardian ad litem for vulnerable individuals, such as minors or those with intellectual disabilities, residing in properties undergoing foreclosure. This guardian will protect their interests and inform them about the foreclosure process. The act will take effect immediately and will apply to tax liens where the right of redemption has not been foreclosed as of the effective date, while not affecting any foreclosure actions with a final judgment entered prior to that date. Overall, the bill aims to enhance protections for property owners during the foreclosure process and ensure fair treatment regarding surplus equity.

Statutes affected:
Introduced: 54:5-97.1, 54:5-98.1, 54:5-98.2, 54:5-104.64