New Jersey Appellate Court Holds that Foreclosure May Proceed Based on Defendant's Failure to Timely Respond

New Jersey Caselaw:  The New Jersey Appellate Division recently upheld the foreclosure of real property located in Phillipsburg, New Jersey.  The foreclosure was brought based on the owner's failure to pay property taxes.  The total unpaid taxes amounted to $3,281.04.  The City had placed a lien on the property, and when they remained unpaid, the City then held a tax sale to recoup the amount owed.  Thereafter, the tax sale certificate was sold, and a future purchaser of that certificate proceeded to commence foreclosure action to collect on the certificate.  Notably, the foreclosure action was commenced almost ten years after the accrual of the taxes for which the certificate was based. An order was entered, and the defendant then arrived to try to pay the balance at the last hour.  However, when he did so, he tried to pay with checks that were stale and a certified check that was in an improper amount. 

Over a year later the property was foreclosed upon and title was transferred pursuant to a default judgment.  The defendant tried to vacate that judgment even though (a) certain time periods to reconsider part of the matter had passed and (b) there did not appear to be a good basis to reconsider the balance of the claim. Therefore, the Court refused to vacate the judgment, and the foreclosure stood.  This decision appears to be based primarily on the fact that the defendant was well aware of the action and had proper opportunity to address it prior to the judgment being entered, and prior to the property being sold to a new bona fide purchaser.  The lesson here is clear:  you cannot delay or otherwise ignore a foreclosure proceeding.  If you do so, you can waive your rights.  Once that has occurred, you may not be able to go back and "fix it."  It is critical that you respond quickly and properly to a threatened foreclosure action, and to properly answer any court documents.

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