Protects equity accrued by property owner in tax sale foreclosure.

S 1321 amends New Jersey's tax sale law to require that after a lienholder (whether a municipality or private entity) forecloses a tax lien and is reimbursed for the property taxes and interest they paid, any remaining equity from the property sale must be returned to the original property owner. This directly affects property owners who fall behind on taxes but whose properties sell for more than the owed amount, preventing "equity theft" where excess proceeds were previously kept by lienholders. The bill responds to the U.S. Supreme Court's *Tyler v. Hennepin County* ruling (2023), which found retaining excess sale value without compensation violates constitutional protections. It mandates that courts return excess equity to owners after reimbursing lienholders for taxes and interest, aligning New Jersey law with constitutional requirements.