Skip to main content



Wachovia Bank v. Mondul

A-0002-07T1 (N.J. Super. App. Div. 2009) (Unpublished)

FORECLOSURE; TAX SALES — The reason for the requirement that a third-party purchaser intervene in a tax foreclosure proceeding beforehand is to ensure that more than nominal consideration has been paid to a property owner facing foreclosure.

A company in the business of buying tax sale certificates purchased one and later brought a foreclosure action on the property. An investor who purchased distressed properties and resold them for profit then bought the property from its owner. The transaction left the owner with a net gain after all liens on the property were paid off. After the investor, using an alias, sought to redeem the property without intervening in the foreclosure proceedings, the certificate holder became aware of the investor’s attempt to close and filed a motion to prevent the investor from redeeming the property. In response, the investor made a cross-motion to intervene in the foreclosure proceedings.

The lower court denied the investor’s request to intervene based on a precedential decision that requires a third-party purchaser to intervene in a tax foreclosure action before attempting to purchase the property and redeem the tax sale certificate. The lower court imposed a constructive trust, permitting the certificate holder to stand in the place of the investor for the purpose of purchasing the property. On appeal, the Appellate Division pointed out that the purpose of the requirement that a third-party purchaser intervene in a tax foreclosure proceeding beforehand was to ensure that more than nominal consideration has been paid to a property owner facing foreclosure. Here, the Court found that the lower court properly denied the investor’s attempt to intervene in the foreclosure proceedings and affirmed its decision.


MEISLIK & MEISLIK
66 Park Street • Montclair, New Jersey 07042
tel: 973-783-3000 • fax: 973-744-5757 • info@meislik.com