News


  • Victory for Commercial Property Owner in Tax Foreclosure Case (Jan. 2018):  Our law firm succeeded in helping a commercial property owner recover title to his property lost in a tax foreclosure case. About a month after the foreclosure judgment was entered our client secured the funds necessary to pay off the plaintiff's tax sale certificate, but by then it was too late because title to the property already had passed to the plaintiff. (Unlike regular real esate foreclosures that require a sheriff's sale before title can pass, in real estate tax foreclosure cases title passes to the plaintiff once the Court enters final judgment.) This unfortunate situation presented an absolute disaster for our client who is counting on this property to fund his retirement, as the property has $200,000 in equity over and above the amount due on the tax lien and there is no mortgage lien. We filed an emergent application to vacate the judgment on the grounds of "changed circumstances" - that our client now possessed the money required to pay off the tax lien and therefore it would be inequitable to continue enforcing the judgment against him.  In an oral ruling issued on January 19, 2018 the Court agreed, and now our client stands to get his property back.  As a result of our efforts we preserved more than $200,000 of equity for our client. Bascom Corp. v. Mullen, Superior Court of New Jersey, Chancery Division, Passaic County, Docket No.: F-13914-16.

 

  • Victory for Successful Bidder at Sheriff's Sale (Jan. 2018): Represented successful foreclosure bidder in a Chapter 11 bankruptcy case involving a multi-million dollar commercial property in Palisades Park, New Jersey.  Our client purchased the property for $6.4 million at a judicial sale conducted by the Bergen County Sheriff. After the sale, the debtor attempted to exercise its state law redemption rights by presenting approximately $6.5 million in certified funds to the Sheriff. However, the debtor failed to seek bankruptcy court approval for this substantial loan transaction which violated its fiduciary obligations under the Bankruptcy Code. After a contested hearing, the bankruptcy court rejected the unauthorized loan transaction and granted our client relief from the automatic stay of the Bankruptcy Code to complete the foreclosure sale. Thereafter, over the property owner's objection, the Superior Court of New Jersey confirmed the sale and directed the Bergen County Sheriff to issue the property deed to our client. KL Palisades, LLC, United States Bankruptcy Court, District of New Jersey, Civil Case No.: 15-32649-SLM.

 

  • Family Home Rescued From Tax Foreclosure (November 2013):  Our clients lost their home as a result of an unpaid real estate tax lien foreclosed by a tax lien purchaser. Our clients claimed they had no knowledge of the lawsuit, and were completely shocked when sheriff’s officers appeared at their home with moving trucks to evict them.  We determined that there was a basis to overturn the foreclosure judgment because of defective service of legal process. We immediately prepared and filed an order to show cause to vacate the foreclosure judgment on the basis of lack of due process, and requested a preliminary injunction prohibiting the plaintiff tax investor from selling the property pending further order of the Court.  Prior to the court hearing plaintiff consented to allow our clients to redeem the property by paying the full amount of the unpaid tax lien, plus legal fees and interest.   We saved the family’s home without ever appearing in the Courtroom!  Royal Tax Lien Services vs. Arik, Superior Court of New Jersey, Chancery Division, Bergen County, Docket No.: F-7409-11.

 

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