New Jersey Homeowners Call Tax Foreclosure Law Unconstitutional

Former homeowners alleged in a proposed class action lawsuit that New Jersey owes them damages for unlawful takings of their homes under tax foreclosure sales that didn’t provide them just compensation.

The plaintiffs said the US Supreme Court’s May ruling in Tyler v. Hennepin County found that a tax foreclosure amounts to an illegal taking when the excess value of the property’s tax delinquency isn’t passed to the former homeowner. The complaint requested the New Jersey Superior Court find that a statute that governs tax forclosures—N.J.S.A. 54:5-86 of the New Jersey Tax Sale Law—to be unconstitutional.

“All putative class ...