Right to redeem a tax sale certificate
N.J. Stat. § 54:5-54
In plain words
When a town sells a tax sale certificate on your property, you still own the home. You can redeem (pay off the certificate plus interest and costs) at any time until a court foreclosure judgment cuts off your right. A private buyer must wait two years before suing to foreclose.
Who is protected
Owners of New Jersey property subject to a tax sale certificate.
When it applies
- Only in New Jersey.
- Only if you are behind on property taxes.
What you can do
Ask the tax collector for a redemption figure
Get the exact amount in writing and pay through the tax collector.
Deadline: Until final judgment in a tax foreclosure
Open the toolRead your state guide and find free help
Open the state page for the process, deadlines and legal-aid contacts in your state.
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Honest limits
- Interest (up to 18%) and costs keep growing, so redeeming early costs less.
- This is general education, not legal advice. Laws change and details matter — check the current official text or talk to a legal aid lawyer or HUD-approved housing counselor.
The law
- State lawRedemption of tax sale certificate
N.J. Stat. § 54:5-54
What it says: The owner may redeem until the right to redeem is cut off under the tax sale law.
Read the official texthttps://law.justia.com/codes/new-jersey/title-54/section-54-5-54/
Court cases
- Homeowner wonCited for this rightJones v. Flowers
Jones v. Flowers, 547 U.S. 220 (2006)
when mailed notice of a tax sale is returned undelivered, the government must take additional reasonable steps to notify the owner before selling the property
- Homeowner wonSame topicTyler v. Hennepin County
Tyler v. Hennepin County, 598 U.S. 631 (2023)
a government that sells a home for unpaid taxes and keeps the value beyond the tax debt takes property without just compensation
- Homeowner wonSame topicHall v. Meisner
Hall v. Meisner, 51 F.4th 185 (6th Cir. 2022)
a homeowner's equity in property taken for a smaller tax debt is protected property, and taking it without compensation states a federal takings claim
- Homeowner wonSame topicMennonite Board of Missions v. Adams
Mennonite Bd. of Missions v. Adams, 462 U.S. 791 (1983)
a person with a recorded interest in property is entitled to notice by mail or equally reliable means before a tax sale, and publication or posting alone is not enough
- Homeowner lostSame topicPung v. Isabella County
Pung v. Isabella County, No. 25-95, slip op. (U.S. June 23, 2026)
after a fairly conducted tax sale, the government owes the former owner the surplus from the sale price, not the property's fair market value
Related rights
Right to demand a sale and keep the surplus (2024 law)
N.J. Stat. § 54:5-98.1a.
After Tyler v. Hennepin County, New Jersey changed its law in 2024. In a tax-sale foreclosure, before final judgment, the owner can demand in writing that the Superior Court order a sheriff’s sale or online auction instead of giving the certificate holder the whole home. Money left after the taxes and costs goes to the owner.
Read this rightThe right to real notice before the government takes or sells your home
U.S. Const. amend. XIV, § 1Due Process Clause
Before a state or county sells your property — for example at a tax sale, or through a court foreclosure — the Constitution requires notice that is reasonably likely to actually reach you. If the government knows your address, publishing a notice in the newspaper is not enough. If a mailed notice comes back unclaimed, the government must take extra reasonable steps to reach you, if it practicably can.
Read this rightThe government cannot keep your home equity beyond the tax debt
U.S. Const. amend. VTakings Clause
If your home is taken or sold to pay property taxes, the government may collect what you owe, but it may not keep the extra value. Keeping the surplus is a "taking" of your property without just compensation, which the Fifth Amendment forbids (Tyler v. Hennepin County, 2023). You may be able to claim the surplus, but you usually must follow your state's claim process and deadlines.
Read this rightFair handling of your escrow account
12 C.F.R. § 1024.17(c)(1)
If your servicer collects money for taxes and insurance (escrow), it must pay those bills on time as long as you are not more than 30 days behind. It must review the account every year and send you a statement. It cannot keep more than a small cushion (one-sixth of a year's payments), and it must refund a surplus of $50 or more within 30 days of the review. When you pay off the loan, it must return what is left within 20 business days.
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