Hi,
Does the property become yours, free and clear, even if the owner has a mortgage on the property, but did not pay the taxes within the redemption period. I just don’t want to invest money into a tax deed and then have to be stuck with their mortgage because of a lein against the property. I just want to sell the property right out.
I know there has to be someone that knows…
Thanks,
Lee L.
From what I understyand, the mortgages go away. IRS liens and property taxes remain. Depending on your state, other liens may stay on as well like HOA liens.
steve
Thank you so much for your response. I almost thought nobody could answer this question.
Thanks,
Lee
Study-up on the tax lien/deed rules for your county/state, they vary and the devil is in the details.
I usually buy tax liens, but the principle is the same, most liens get wiped out. BUt I found this is very slow process because the HO’s somehow come up the with missing property tax money + the penalty. 
steve
I actually have studied the process but haven’t seemed to find this information written in plain english. I’m sure it says it in my face, but I’m not seeing it with my right or left eye :o. It may be a slow process but in the state of Texas they have a 6 month redemption period on non-agriculture land. Also, the penalty which is 25% interest is a great return, at least in my eyes. You either get 25% interest or you get a steal which should net way over 100%. I’m not all the way to sure on the numbers, but I will trial and error this one by attending a auction on Tuesday.
Thanks All!!
Good luck Brandy. Hope things work out for you. I am in Kentucky and bought my first tax lien in april of this year.
I went to my state government page and researched the state laws on this subject. If you can understand the lawyer talk, you should be able to get some more info on how the process works.
I bought a lien on a commercial property here. The dollar amount I will get back is minimal. Like i said it was my first one. It would be nice to make a huge profit, or get this piece of property for a minimal dollar investment. My redemption period is up in April 2007.
You could call and make an appointment with a tax lawyer for advice.
Good luck 8)
Where I am there few properties foreclosed by home owners associations (HOA). Amounths on these are very small… they usually go from $500 to $2000 depending on the amount owner owes to the HOA.
If I buy these property how does it work?
What about the big mortgage the owner owes? Does it stay or go away?
What is the redemption period if any in Texas?
any clarification on this type of auction purchase will be appreciated.
DFW