Tax Lien Sale - Other Liens

Foreclosures, Short Sales, Tax Foreclosures
1

What happens if you purchase a property at a Tax Lien Sale and then start the title search and foreclosure process after the redemption period and then you find out that there are outstainding liens against the property (e.g. HELOC, 2nd Mortgage, etc).

Are you responsible for paying off these other liens or can you still acquire a “FREE and CLEAR” title inspite of these liens.

Also I have heard people mention that in some cases the other lien holders will try to pay of the outstanding tax balance and any other fees (e.g interest, etc), can you say “no” to these companies and proceed with the foreclosure?

2

It really depends on your state. In FL for example You can buy a tax deed property and it is considered free and clear. You must still file quiet title to get rid of anyone that ‘could’ make a claim.

3

I’m in Maryland and Maryland is a “Tax Lien” state not a deed state. I am curious if anyone has purchased a Tax lien in a “lien” state and acquired the property through the process and if they had any problems with other liens on the property?