I was able to find most of the information I needed for my first Tax lien investment but want to nail down one last bit.
If I foreclose on the house due to the unpaid Tax lien and it has a mortgage on it, What happens to the Mortgage?
Is the family stuck to pay it, does the Bank lose out or do I get stuck with it?
Most everything I find or people I have talked to have not had to deal with a mortgage on a property.
I am learning as I go and picked a tough one to start with.
Thanks everyone.
Help me help you!! One question what State are we talking?
Sorry, I did it again.
It is in Ohio.
Franklin County if it matters.
Thanks!
When faced with non-payment of property Tax, sometimes the County Governments offer tax sales at an auction to the public as a step toward making lost income. In the case of an auction of tax lien sales, it is actually just a certificate that is sold and a purchased and not the actual land or property.
Hello, here is the answer to your question…All of the mortgages are completely wiped out after the sale, with the exception being New Mexico. The homeowner or property owner who is losing their property never gets stuck with it, neither do you (except in NM), the bank or lending institution basically just loses the monies owed to them (No big deal there)…In fact, you’d be surprised how the property owner losing their home ends up…
For example…In the state of FL, let us say the property is worth $100,000 and the unpaid taxes (or starting bid) is $6,000. Now let us say that you bid the property up to $20,000…Do you know who the difference of $14,000 goes to?..it goes to the property owner who just lost the property so they can start over. The county only receives the monies they are owed…(although many property owners are not aware of this, and they never seek the monies that are owed to them.)
Good Luck, I wish you the best with your tax sale investing in 2010. Be cautious, dont overbid.
please also note…Ohio is a tax deed state and do not sell any lien certificates that I am aware of.