S4015

c. (C. ) (pending before the Legislature as this bill), in the case in which the proceedings are brought and prosecuted by the municipality for its own use and if a judgment barring the rights of redemption and foreclosing all prior or subsequent alienations and descents of the lands and encumbrances thereon, is entered thereon, it shall adjudge an absolute and indefeasible estate in fee simple in the lands therein described, to be vested in the State or the county, as the case may be, and such judgment shall be binding and final upon all persons in the same manner as though it was entered in favor of the municipality for its own use.

(cf: P.L.1974, c.22, s.3)

2. (New section) Notwithstanding the provisions of any law, rule, or regulation to the contrary, a municipality holding tax sale certificates that are at least 20 years old shall be permitted to follow the summary proceeding set forth in this section for the foreclosure of the right to redeem those certificates, for a period not to exceed 48 months from the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill). The governing body shall approve the use of the summary proceeding by resolution, pursuant to section 7 of P.L.1948, c.96 (C.54:5-104.35).

a. The tax collector of the municipality shall identify, from the tax sale certificates held by the municipality, those certificates that are at least 20 years old, and shall determine the number of certificates for which a summary proceeding pursuant to this section shall be commenced. A municipality may initiate a summary proceeding, or multiple summary proceedings, as the case may be, for some or all of the outstanding certificates.

b. Prior to the filing of a summary proceeding, the tax collector shall cause a title search of not less than 20 years to be performed on the municipality’s behalf to verify the ownership of each parcel of real property subject to a summary proceeding pursuant to this section.

c. The tax collector shall prepare and publish a Notice of Intent to File a Summary In Rem Tax Foreclosure Action in the official newspaper of the municipality designated pursuant to R.S.40:53-1, and in at least one newspaper of general circulation published in the State, each week for three consecutive weeks, notifying the public of the municipality’s intention to file a summary in rem tax foreclosure action pursuant to this section. The notice shall also be prominently displayed on the municipality’s Internet website. The notice shall contain the number of the tax sale certificate and the property address for each of the tax sale certificates the municipality seeks to foreclose. The notice shall state in boldface type that the owner of a property or other interested party shall have 45 days from the date of the first publication of the notice of intent to submit to the tax collector a written objection to the foreclosure of a tax sale certificate on a parcel of real property listed in the notice of intent.

d. Within seven days after the first publication of the notice of intent required pursuant to subsection c. of this section, the tax collector shall send, via certified mail, return receipt requested, and regular mail, a copy of the published notice of intent to the last known property owner of record for each parcel of real property listed in the notice of intent at the owner’s address in the latest municipal tax duplicate, as well as any other person having an ownership or lien interest recorded in the office of the Superior Court Clerk, the office of the county clerk, or the office of county register of deeds and mortgages.

The tax collector shall also, within seven days and via electronic mail, send a copy of the notice of intent to the Office of the Attorney General.

e. Upon the expiration of the 45-day period to submit a written objection provided pursuant to subsection c. of this section, the tax collector shall file with the Superior Court a Summary In Rem Tax Foreclosure Action to foreclose the right of redemption of the tax liens listed in the notice of intent, to which the tax collector shall attach for each parcel of real property the number of the tax sale certificate, the date of the tax sale, the block and lot location of the property as it appears on the municipal tax map, a copy of the notice of intent, an affidavit of the tax collector certifying the publication of the notice of intent as required pursuant to subsection c. of this section, and proof of mailing to each person listed in subsection d. of this section.

f. Once the requirements of this section have been satisfied, the foreclosure of the right to redeem the tax liens shall proceed pursuant to the provisions of the tax sale law, R.S.54:5-1 et seq.

3. This act shall take effect immediately and shall expire on the first day of the 49th month next following enactment.

STATEMENT

This bill would establish a summary in rem tax foreclosure proceeding which may be used for a period not to exceed 48 months following enactment of the bill,by a municipality to foreclose tax sale certificates that the municipality has held for at least 20 years. The purpose of the bill is to more easily enable a municipality to foreclose very old tax liens that it has held for at least 20 years. For a myriad of reasons, some of these liens are held for many years, and the cost to foreclose a tax sale certificate can be very expensive, accounting for attorney’s fees, title searches, court filing fees, advertising costs and other necessary expenses. Municipalities holding large number of old tax sale certificates require an easier foreclosure process than that provided for under current law.

Under the bill, a municipality holding tax sale certificates that are at least 20 years old would be permitted to follow the summary proceeding for the foreclosure of the right to redeem those certificates, for a period not to exceed 48 months from the date of enactment of the bill. The governing body of the municipality would have to approve the use of the summary proceeding by resolution, pursuant to section 7 of P.L.1948, c.96 (C.54:5-104.35). The tax collector of a municipality deciding to use this summary proceeding would identify, from the tax sale certificates held by the municipality, those certificates that are at least 20 years old, and determine the number of certificates for which a summary proceeding would be commenced. Prior to the filing of a summary proceeding, the tax collector would cause a title search of not less than 20 years to be performed on the municipality’s behalf to verify the ownership of each parcel of real property subject to a summary proceeding.

The bill would require the tax collector to prepare and publish a Notice of Intent to File a Summary In Rem Tax Foreclosure Action in the official newspaper of the municipality and in at least one newspaper of general circulation published in the State, each week for three consecutive weeks, notifying the public of the municipality’s intention to file a summary in rem tax foreclosure action. The notice would contain the number of the tax sale certificate and the property address for each of the tax sale certificates the municipality seeks to foreclose. The notice is required to state in boldface type that the owner of a property listed in the notice of intent, or other interested party, has 45 days from the date of the first publication of the notice of intent to submit to the tax collector a written objection to the foreclosure of a tax sale certificate on a parcel of real property listed in the notice of intent.

The bill also requires individual notice to the owner of each parcel of real property listed in the notice of intent. The bill requires that within seven days after the first publication of the notice of intent, the tax collector send, via certified mail, return receipt requested, and regular mail, a copy of the published notice of intent to the last known property owner of record for each parcel of real property listed in the notice of intent at the owner’s address in the latest municipal tax duplicate, as well as any other person having an ownership or lien interest recorded in the office of the Superior Court Clerk, the office of the county clerk, or the office of county register of deeds and mortgages. The tax collector is also required to send a copy of the notice of intent to the Office of the Attorney General, within seven days and via electronic mail.

Upon the expiration of the 45-day period to submit a written objection to the foreclosure of a tax lien, the tax collector would file with the Superior Court a Summary In Rem Tax Foreclosure Action to foreclose the tax liens listed in the notice of intent. The tax collector would have to attach for each parcel of real property the number of the tax sale certificate, the date of the tax sale, the block and lot location of the property as it appears on the municipal tax map, a copy of the notice of intent, an affidavit of the tax collector certifying the publication of the notice of and proof of mailing to the last known property owner of record for each parcel of real property listed in the notice of intent at the owner’s address in the latest municipal tax duplicate, as well as any other person having an ownership or lien interest recorded in the office of the Superior Court Clerk, the office of the county clerk, or the office of county register of deeds and mortgages.