NJ A1035

Prevents tax lien holders from automatically gaining full property ownership when a court forecloses on a tax sale certificate after the 2-year redemption period expires

Requires the Superior Court to instead order a sheriff's Internet auction of the foreclosed property, with the tax lien holder's paid taxes, interest, and court costs becoming the first priority lien

Mandates the sheriff distribute auction proceeds within 14 days: first to the tax lien holder for all amounts owed, then to the municipality for any outstanding liens, then to cover auction costs

Returns any remaining auction proceeds to the original property owner, allowing them to retain equity built up through mortgage payments or property appreciation

Addresses situations where property owners losing homes to tax foreclosure also lose all accumulated equity, which can lead to homelessness when no funds remain to secure alternative housing