Can Unpaid Water Bills Cause A Home’s Foreclosure

Q: I recently received a foreclosure notice on our home. We were behind on the water bill a few years ago, but I pay my mortgage every month. Can they really foreclose because of an unpaid water bill? Beatrice, Springfield, NJ

A: Unpaid municipal liens in NJ can lead to foreclosure. If a homeowner fails to pay their property municipal bills (i.e. property taxes,water-sewer bills etc), the municipality can sell a tax lien on the property. A property owner has a period of time to “redeem” the lien by paying the amount owed. In NJ, this redemption period is usually two years for private investors and six months for a town municipality. After a certain period of time, the lien holder can initiate a foreclosure suit to potentially take ownership of the property. The foreclosure process in NJ involves a lawsuit in the Superior Court. If the court grants foreclosure, the lienholder may gain ownership of the property. Thanks for your question, Beatrice.

Thanks for your question, Gary. For more real estate tips and information, visit my blog at geraldlucas.com.