Wantage committee closes 2013 financial business
WANTAGE — The Wantage Township Committee authorized payments to investors for tax-lien certificates going back to the 2009-10 tax year at its final meeting of 2013 on Dec. 30.
According to state law, municipal governments may make tax-lien certificates for properties in which taxes have not been paid for one year.
The committee also authorized that Sussex Borough be reimbursed for water/sewer charges sold at the tax sale, December 10, for different block and lot numbers, ranging from about $50 to around $600.
About six tax lien investors attended the Sussex County Tax Lien Certificates sale where about 39 tax lien certificate properties were sold.
The council also unanimously assigned the Wantage Tax Collector, Melissa Caton, to authorize liens for unpaid taxes dating back to the tax year 2012.
According to the state, if the owner of a property is delinquent in taxes during the prior year, the tax collector is to place a tax lien certificate against the property. Next, the township tax collector advertises the tax sales in the NJ Harold four weeks prior to the sale and places notices in five locations around town.
The county tax collector then sells the tax lien certificates to the winning bidders at the Sussex County Tax Lien Certificates Sale.
In favor of investors, per state law, certificates can earn 18 percent per year on the amount paid for delinquent taxes and 4 to 6 percent on the amount the winning bidders pay to purchase the tax lien certificate. Plus, tax lien certificates are secured by real estate.
On the other side, property owners have two years to pay back the amount the winning bidder paid to purchase the tax lien certificate, plus possibly 24 percent interest on the amounts paid by the investor.
Adding to difficulties, the investor could pay the next year’s taxes in advance, which the owner also would need to pay.
According to state law, the property owner cannot make partial payment of amounts owed. If all taxes, interest, and penalties are not paid back within two years, the property owner loses his property to the investor.
About 50 properties receive tax lien certificates each year in Wantage Township.
A tax lien certificate can turn into a foreclosure tied to a mortgage. The county sheriff’s office is responsible for foreclosures in Wantage Township.
Only the delinquent tax dollars go to the town. Then the town reimburses the bank which is the custodian for the investor.