The June 6, 2022, edition of the New Jersey Law Journal contained an article titled “Revision to the Tax Sale Law; Tragedy for Distressed Homeowners.” I respectfully disagree with the conclusions of the authors and wish to provide another view. The article improperly indicates that A5142 and the revision to N.J.S.A. 54:5-89.1 is going to harm distressed property owners being foreclosed. As set forth in the committee statement, the bill actually protects individuals from excessively low offers. 

Since the New Jersey Supreme Court issued its decision in Simon v. Cronecker, 129 N.J. 304 (2007), there have been numerous cases wherein third-party investors have been able to purchase property for a fraction of the property’s fair market value. The test set forth by the New Jersey Supreme Court in Simon v. Cronecker, was the “under all the circumstances test.” This has led to various interpretations among the general equity judges throughout the state. Since the old test was very subjective, it led to a significant amount of litigation.  

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