Tax Auctions

If some one can clarify,

what happens to the loans after a tax sale, if the total proceeds don’t add up to the total liens. I know that the property taxes are at the top of the list, followed by the rest, but if all the proceeds from the sale don’t add up to the total liens, are they just wiped out.


Yes. That’s why sometimes you’ll see the 1st mortgage company bidding on it to protect their asset. If there’s equity, they’ll bid up to what’s owed on taxes and what they need to be paid off. 2nd mortgages usually get screwed.

Hello at a tax auction, what is being auction off is a tax certificate that is when an investor paid the taxes for the property and after 2 years as it is here in florida they can then pay for an application to have the property then be auction to the highest bid. to your question once sold to the highest bid the county will issue again in my state a tax deed which then the property is your do as you please and there is no liens left they are all wiped out, check out your county clerk of courts to find more info in your state it free information to the public hope I helped dmbt1

That’s in FL. Not all states sell the lien. Some states just wait the 2 years then the property is auctioned to the highest bidder. The county takes the taxes and the rest of the money goes to the other lien holders in order.

Delaware sells tax liens to the highet bidder. Only a 90 day redemptoin period. Once sale is approved by the courts and no redemption the property is yours.