The following citations, case summaries and links relate to successful Appellate and NJ Supreme Court cases previously argued by Anthony L. Velasquez, Esq., concerning New Jersey Tax Foreclosure Law and the right to intervene and profit as third party investors. Please contact the Law Offices of Anthony L. Velasquez, Esq., for any tax lien investor questions and/ or the aggressive representation of redemption issues.
Simon v. Cronecker, 189 N.J. 304 (2007). In this landmark case, the NJ Supreme Court confirmed the legitimacy and legality of third party buyers to intervene, acquire redeemable interests in land and then redeem the foreclosing tax lien, despite their lucrative profits provided that the purchase price paid to the owner yields a true, meaningful and tangible benefit above nominal consideration. Here, the sale of a multi-lot, waterfront property in Sea Isle City valued at $1.2 million was found to satisfy the Court’s test despite a $250,000 (21%) purchase price with a net gain of $63,000 (5.25%) to the owner. The Court established and set forth the procedural requirements for all intervention motions to follow. While this buyer had not technically satisfied the requirements, the case established the unequivocal rights of third party investors to pursue foreclosure properties without legitimate objection from the tax lien holders as long as the intervention procedures are satisfied.
http://law.justia.com/cases/new-jersey/supreme-court/2007/a-105-05-doc.html
Simon v. Rando, 189 N.J. 334 (2007). This case expanded upon the landmark decision in Cronecker and applied the analysis with equal weight to real estate investors who acquire mortgages and/ or prior tax liens.
http://law.justia.com/cases/new-jersey/supreme-court/2007/a-121-04-doc.html
Kanter v. Szczepanik, A-2755-06 (NJ App. Div. decided 4/4/08). In this case, the Appellate Court reversed and remanded the Trial Court’s denial of Cherrystone’s right to intervene, buy and develop the subject property. The tax lien holder argued that the property was worth nearly 4 times as much as Cherrystone’s purchase price. The Appellate Court again adopted the Cronecker analysis. Furthermore, The Appellate Court confirmed the unequivocal right of a contract buyer to have standing to intervene in tax foreclosure cases provided that the Cronecker analysis is satisfied.
http://law.justia.com/cases/new-jersey/appellate-division-published/2008/a2755-06-opn.html
Robinhood Properties, LLC v. NJ TLC and Arianna Financial Corp., LLC, A-3311-08 (NJ App. Div., decided 1/25/11). In this case, Robinhood properly intervened and acquired a 1/3 ownership interest in a lucrative multi-unit apartment complex for 10% of the property value. It then paid 100% of the taxes due and owing, and sought contribution from the other 2/3 owners. The Trial Court granted such contribution and the Appellate Court affirmed.
http://law.justia.com/cases/new-jersey/appellate-division-unpublished/2011/a3311-08-opn.html
Arianna Financial Co. v. Lopez, A-1448-07 (NJ App. Div., decided 9/25/08). This case involved the sale of vacant but lucrative property in Clifton, NJ. Cherrystone obtained a contract to buy the property for $100,000 although the Court appointed appraiser valued the land at $300,000. After satisfying the foreclosing tax lien, the owner would reap approximately $79,000 from the sale (instead of losing all equity to foreclosure judgment). The tax lien holder opposed the sale and sought to foreclose. The Trial Court denied Cherrystone’s motion to intervene and buy the property for $100,000, but the Appellate Division reversed and adopted Cherrystone’s arguments that (a) service was improper, and (b) the intervention motion should be granted to allow the sale of $100,000 to go forward to Cherrystone.
http://law.justia.com/cases/new-jersey/appellate-division-unpublished/2008/a1448-07-opn.html
M. Credit, Inc. v. Sexton, A-4337-06 (NJ App. Div., decided 6/19/08). In this case, the client Cherrystone Bay, LLC, obtained a contract with the property owner to buy a single family home for $130,000. The foreclosing tax lien had an outstanding balance of $65,000, leaving a balance of $65,000 for the owner after satisfaction. The property value was disputed to be between $225,000 (minimum) and $315,000 (maximum). The Appellate Court upheld the Order granting Cherrystone’s request to intervene and permitted Cherrystone to buy the property for $130,000.
http://law.justia.com/cases/new-jersey/appellate-division-unpublished/2008/a4337-06-opn.html
American Tax Funding v. Golazewski, A-668-07 (NJ App. Div., decided 8/29/08). In this case, the Appellate Court upheld the right of the investor Cherrystone to purchase an assignment of a tax lien and an assignment of a mortgage and then, upon the vesting of these redeemable interests for what the Court found to be above “nominal consideration” as that term was defined by the NJ Supreme Court in Simon v. Cronecker, 189 N.J. 304 (2007).
http://law.justia.com/cases/new-jersey/appellate-division-unpublished/2008/a0668-07-opn.html
Wachovia Bank, N.A. v. Groff-Kelso, A-2493-06 (NJ App. Div., decided 7/8/08). In this case, the Appellate Court reversed and remanded the Trial Court’s wrongful denial of Cherrystone’s motion to intervene and buy a residential property for 40% of its market value. Cherrystone had again satisfied the Cronecker analysis and properly intervened so as to permit it to profit from this transaction.
http://law.justia.com/cases/new-jersey/appellate-division-unpublished/2008/a2493-06-opn.html
DelVecchio Pension Trust v. Banks, A-1039-06 (NJ App. Div., decided 3/10/08). In this case, the Appellate Court reversed and thereby confirmed the right of the buyer to purchase the subject property for approximately 1/3 of the property value. It found “substantial compliance” with the Cronecker requirements.
http://law.justia.com/cases/new-jersey/appellate-division-unpublished/2008/a1039-06-opn.html
American Tax Funding, LLC v. Davis, A-5717-07 (NJ App. Div., decided 5/27/09). In this case, the client LittleNeck, LLC, obtained a contract to buy a single family property for $130,000 from the owner/ seller. This would allow the seller to avoid foreclosure and receive a net equity gain of at least $56,000 instead of losing the property (and all equity) to foreclosure judgment. The tax lien holder and the buyer disputed the actual property value ($250,000 minimum value and $330,000 maximum value), but the Appellate Court upheld the Order granting LittleNeck’s request to intervene and permitted Little Neck to buy the property for $130,000.
http://law.justia.com/cases/new-jersey/appellate-division-unpublished/2009/a5717-07-opn.html