Article erroneously explained tax sales

NEWTON — A couple of weeks ago the Township Journal ran an article about Newton and other towns in the area holding tax sales. In the article, it was erroneously reported that the municipalities were selling properties on which back taxes are owed. They don’t sell the properties; they actually just sell the debt. Here is what the article should have said: Once a municipality exhausts all its options for collecting past due taxes and/or utility bills, it hosts a tax sale to regain the funds. A tax sale is an open auction. For the price of back taxes and utilities owed the township, the buyer then holds a lien against the property. A regular tax sale will include the balance owed to the municipality from the previous year, plus any penalties and fees incurred during the current year. Once a lien is established, the new lien holder receives a certificate from the town. Lien holders can earn as much as 18 percent interest on everything paid toward that property, said Daryn Cashin, Andover township tax collector. The homeowner is still obligated to pay his bill, and can come into the municipal tax office to pay off the balance of the lien at any time. A lien holder can foreclose on the property but must wait two years before beginning proceedings. If a property that is up for auction does not get purchased, it gets kicked back to the municipality, which then creates a municipal lien, said Cashin. “Then it gets kicked back to a municipal lien,” Cashin said. “Then the town gets six months to foreclose on the property … We very rarely foreclose; towns normally don’t foreclose.” Each municipality within New Jersey is mandated to host a tax sale, said Linda Roth, Newton township tax collector.