Questions about Investing In New Jersey

I recently got a couple of questions about investing in tax liens in New Jersey. While I answered these in the comments section of this blog I thought that it would be helpful to answer them for you in one blog post since they are both about investing in New Jersey, but were submitted as comments on 2 different blog posts. So here are the questions and answers for you:

Question from Andrew:
In the state of New Jersey(specifically Sussex County), are recording fees , water and sewer reimbursed upon redemption?

Answer:
Recording fees are reimbursed and not only are sewer and water amounts that you pay are reimbursed but you receive interest on them as well. They are added to your lien. In order to receive those payments back plus interest when the lien redeems, you must submit an affidavit to the tax collector when you make any payments. This includes recording fees and any subsequent tax payments.

Question from Heidi:
Regarding utility liens?.your Q&A answered some of my question, that you, the investor, get the $12.00 search fee in NJ paid to you even though we have not paid for it..correct?
Which makes me wonder that if you would get the $40 recording fee back also even if you did not have it recorded? Or is there no way you would get paid when it redeems if you do not record it? I am just trying to fiqure out if the city does not have an affidavit for the $12.00 search fee..would they just add the $40 recordeding fee without an affidavit?

Answer:
Every tax collector plays by their own rules on this, most will automatically give you the $12.00 search fee, but some might not give it to you unless they have an affidavit for it. All tax collectors require affidavits for the recording fee and subsequent tax payments.

What I do is pay my first subsequent tax payment as soon as I can and then send in an affidavit for both the recording fee and the subsequent tax payments, you can have different payments on the same affidavit as long they are for the same lien.

Have more questions about investing in New Jersey or any other state? Submit your questions below in the comments and I’ll answer it for you.

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