Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Tax Liens & Mortgage Notes
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 5 years ago on . Most recent reply

User Stats

1
Posts
0
Votes
John-Michael Esposito
  • Real Estate Agent
  • Laurel Springs, NJ
0
Votes |
1
Posts

Bought Some Liens with a Prior Lienholder... and I Have Questions

John-Michael Esposito
  • Real Estate Agent
  • Laurel Springs, NJ
Posted

BACKGROUND: Today I bought three liens at auction, all of which are for vacant land owned by the same owner. (For reference, the land is located in southern New Jersey.) On all three, there is an investment company who owns a prior tax lien. The prior tax liens were purchased by them in March 2018 for the year 2017 taxes. It appears they made the payments on for all the 2018 taxes, but neglected to pay 2019 and the current 2020 taxes (which I just purchased). 

New Jersey allows you to foreclose after 2 years of non-payment from the owner. I know that the prior lienholder has precedent here, so if they decide to foreclose, I get paid back first. I also know that I can't foreclose as long as their lien is still enforceable, which I believe is 5 years from the date of purchase, after which I think they lose their right to foreclose. (Please correct me here if I'm wrong, I'm new to this.)

THE QUESTIONS: 

  1. Is there anyway to acquire this lien from the previous lienholder, or do I have to wait the 5 years for their interest in the property to expire before I can foreclose? (If not, I obviously don't want to alert them.)
  2. If I can acquire it (or even if not, it's fun to do hypotheticals), since they bought it two years ago, would I be able begin the foreclosure process today, or would I have to wait two years from the purchase of my certificate to begin?

And I'll also take your referrals for Tax Lien Attorneys in NJ. Haha. 

        Loading replies...