Nutley, New Jersey Delinquent Tax Sale Property

The collection of real estate taxes for properties located in Nutley New Jersey is a major priority for the Essex County New Jersey Tax Collector. Real estate taxes fund local services such as public education, police protection and medical services.

Delinquent property taxes create a serious cash-flow problem for Essex County New Jersey. If Essex County New Jersey is unable to collect property taxes, they are also unable to fund important government services like police protection, public schooling, and emergency medical services.

Without the tax revenue generated from real estate located in Nutley New Jersey, Essex County New Jersey would literally go bankrupt.

To solve this cash-flow problem, Essex County New Jersey allows investors to come in and pay off a portion of these delinquent property taxes.

In return, Essex County New Jersey gives investors New Jersey tax lien certificates. A tax lien certificate is a document indicating ownership of a real estate tax lien. A tax lien is simply a claim for taxes.

A New Jersey tax lien certificate transfers all the rights that come with being the owner of the real estate tax lien from Essex County New Jersey to the investor.

When purchasers buy tax lien certificates in New Jersey, they are paying someone else's delinquent property taxes. What's more, New Jersey actually gives purchasers the right to receive all of the tax money due - including fees, interest, and/or penalties.

To encourage delinquent owners to pay their past-due property taxes, the state of New Jersey charges up to 18% per annum on the amount paid to satisfy the delinquent taxes, which is passed directly to the tax lien certificate purchaser.

The sale of tax lien certificates is a solution to a complex problem Essex County New Jersey recovers lost revenue needed to fund local services, the property owner gets more time to satisfy their delinquent property tax bill and the purchaser receives a tax lien certificate which is real estate secured and offers up to 18% per annum mandated by New Jersey law.

For "risk-sensitive" investors New Jersey tax lien certificates are an attractive alternative to traditional investments choices. With tax lien certificates, purchasers are investing their money with Essex County New Jersey and when the Essex County New Jersey Tax Collector collects the past due taxes, they send purchasers a check, returning what they paid to purchase the New Jersey tax lien certificate plus applicable penalties, interest, and/or late fees.

New Jersey tax lien certificates are attractive in several ways. First, the rise and fall of interest rates has no effect on New Jersey tax lien certificates. Unlike the stock market, interest rates on New Jersey tax lien certificates are mandated by New Jersey law.

In addition, New Jersey tax lien certificates are secured by real estate. So if purchasers do not receive what they paid to purchase the New Jersey tax lien certificate plus interest and/or penalties within the law mandated redemption period, the purchaser acquires title to the property free and clear of all liens created prior to the sale.

So in review, there are generally two outcomes with the purchase of a tax lien certificate; the purchaser will either receive what was paid to satisfy the delinquent property taxes PLUS up to 18% per annum, or Essex County New Jersey has the legal right to transfer them the property - often with no mortgage!

Once they own the property they can do whatever they like; sell it, rent it for monthly cash-flow, even move in (often with no mortgage payment).

As with any investment, there is always an element of risk. Even if the tax sale process is written into New Jersey law, mandated by New Jersey law, and regulated by New Jersey law, there is still a chance of purchasers incurring substantial loss. It is recommended that anyone considering buying a tax lien or tax foreclosure property consult properly licensed legal and accounting professionals.

Join the Nutley New Jersey Delinquent Tax Sale Discussion.

Below you will find a collection of the latest user questions and comments relating to Tax Lien Certificates on tax-delinquent property located in Nutley New Jersey.

Learn about Tax Lien Certificates in other counties or municipalities located in New Jersey.

The following is a list of counties located in the state of New Jersey. Tax Lien Certificates for properties located in the following counties are sold at New Jersey county tax sales.

Learn more about each county's individual tax sale process by clicking on the name of the county for which you are interested from the list below: