Home Foreclosure New Jersey Appeal Division Holds Buyer Of Foreclosure Property Tax Sale May Intervene Before Order Sets Redemption Date – Tax

New Jersey Appeal Division Holds Buyer Of Foreclosure Property Tax Sale May Intervene Before Order Sets Redemption Date – Tax


United States: New Jersey Appeal Division Holds Buyer Of Foreclosure Tax Sale Property May Intervene Before Order Sets Redemption Date

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In a decision approved for release, the New Jersey Appeals Division recently asserted that a buyer of a property in a tax sale foreclosure can step in and redeem the property as long as the court of trial did not issue an order setting the deadline for redemption, and that a previously rejected attempt to redeem the property before intervening does not preclude the right to move to intervene. See Green Knight Capital, LLC, c. Calederon, et al., 2021 WL 4823495 (NJ Super. Ct. App. Div. October 18, 2021). In April 2020, the plaintiff initiated a tax sale foreclosure. In September 2020, the defendant purchased the property from the owner for $ 100,000. The defendant immediately sent a check to the collector to redeem the certificate held by the plaintiff, but the plaintiff told the collector to reject it because the defendant had not intervened in the foreclosure action. The plaintiff then sought an order fixing the time, place and amount of the refund. Two weeks later, and before the court dealt with the plaintiff’s first petition, the plaintiff filed another petition to bar the defendant from reimbursement. The defendant came to intervene and allow the redemption. The trial court ultimately ruled in favor of the defendant and the plaintiff appealed, arguing that the defendant’s attempt to redeem himself before intervening prevented his subsequent petition from intervening and redeeming under Simon vs. Cronecker, 189 NJ 304 (2007), among others.

On appeal, the Appeal Division upheld. The Court concluded that the defendant had filed his application for intervention before the court of first instance issued an order setting the deadline for repayment. Therefore, the petition was filed in a timely manner, regardless of whether the defendant attempted to redeem himself before asking to intervene. In addition, the Court concluded that the cases cited by the plaintiff involved parties attempting to intervene after the court had set the deadline for repayment, which differed from this situation and did not apply. “We consider that when an investor has an interest in the foreclosed property, is ready to redeem the tax sale certificate and files a motion to intervene in the foreclosure action prior to the entry of an order setting the deadline. redemption, the investor is authorized to intervene and redeem the tax certificate.

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