Appellate Division overruled foreclosure tax law

[Moises Ulloa]

Hi All! 

I’m in the process of closing on a property in NJ which is being sold by another investor who got it through a tax lien foreclosure. During the process I recently learned that the title company working on my case is having a hard time insuring the title deed due to the new ruling which overturns the current foreclosure tax law leaving open the opportunity for the tax lien decision to be legally voided even after a year.  

Has anyone had experience with this kind of situation? My concern is being able to close on the property with only 3 months of title insurance coverage (thats what title agency is offering) and after flipping the property not being able to secure a buyer due to the title insurance requirement by the lender not being met due to title companies not insuring properties obtained through tax liens. 

 anyone with experience or recommendations! 

read more on the new ruling:  https://www.law.com/njlawjournal/2023/12/07/appellate-divisi...

[Jay Hinrichs]

Quote from @Moises Ulloa:

Thank you guys for your opinion. I might have to let this go as attorney is not sure when a decision in change of policy could happen. While the objective of the law seems fair for the affected ones, this is a disaster leaving a lot of properties empty 

well one thing is certain cash buyers who want rentals and dont care about title insurance up front are going to get some smokin deals.  And those that get caught in this and dont realize whats happening and are counting on title insurance are going to be quit sad.