Anyone here familiar with tax lien sales in Philadelphia?
My question is - are the properties sold at the tax lien auction sold with clear title, or can there be additional undiscovered liens?
Common sense tells me there could be hidden liens, but an investor I met at the auction said all other liens are wiped off title when the property is sold.
What am I missing?
Thanks… ???
my understanding is the tax lien is superior to other liens, and other liens are wiped off. although, you only own the lien, at least until it goes over the time of redemption, which is 2 years. but during that 2 years, you have full ownership of the certificate, and the owner has to pay you back the lien, plus 18%. it’s a good return. after the 2 years, you can then foreclose on the owners and the property is yours, free and clear.
btw, it’s considered a good state for this kind of investment, due to the high interest and short redemption period.
If, there are junior liens, (and there well may be) the liens will “cloud the title”.
You will probably need an attorney to file with the court for a “quiet title action”. - In essence this will judicially remove the lien and inform the lienholders to look for their indebted party (former owner) elsewhere to satisfy whatever debt may exist.