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Selling a house with back taxes in New Jersey
When property taxes fall behind in New Jersey, the town can sell a tax sale certificate on the house, and the amount owed grows with interest. If you'd rather sell than catch up, the back taxes are usually paid off at closing from the sale.
How it works in New Jersey
Back taxes and tax sale certificates.
Unpaid property taxes become a lien on the house. Towns hold tax sales where investors can buy a certificate for that lien, and it then grows with interest and costs. If it isn't paid off, the certificate holder can eventually start a foreclosure to take the property. The sooner it's dealt with, the more equity you keep.
How a sale handles it
Paid off at closing.
- The title company gets the exact payoff amount.
- Back taxes, tax sale certificates and other liens are paid from the sale at closing.
- You receive what's left after the payoffs.
Questions
Common questions
Can I sell a house with back taxes in New Jersey?
Yes. Back taxes are usually paid off at closing from the sale.
What is a tax sale certificate?
When property taxes go unpaid, a New Jersey town can sell a certificate for the lien. It grows with interest and costs and can eventually lead to foreclosure if it isn't paid.
Can I sell before a tax foreclosure is finished?
Often yes, but timing matters. Talk with an attorney about where things stand, and the sooner the better.
Will I get anything from the sale?
If the house is worth more than what's owed, the difference comes to you at closing after the payoffs.
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General information only, not legal, tax or financial advice. Every situation is different.