IF YOU BUY A TAX LIEN AT THE AUCTION, AND WAIT FOR THE REDEMPTION PERIOD TO END, DOES A BANK HAVE THE RIGHT IF THERE IS A MORTGAGE ON THE PROPERTY TO PAY OFF THE BACK TAXES TO THE HOLDER OF THE TAX NOTE, AND THEN CAN THE BANK FORCLOSE ON IT?
???
HAS ANYONE WHO EVER BOUGHT A TAX LIEN EVER ENDED UP WITH THE PROPERTY FREE AND CLEAR?
What state?
KENTUCKY
Here in Texas , a tax lien is superior to a mortgage lien; So the mortgage gets wiped out during foreclosure. Of course, that’s If the suit was properly done. (this has been my biggest problem - the tax lawyers do make many mistakes).
If properly suit was filed and served, then yes - you have a property free and clear, the bank has the same redemption time as the owner.
Be careful though - just because there is no homestead exemption does not always mean a judge will not say it’s not a homestead.
Example: Person not living in the house, so no exemptions with the appraisal district, but he/she does not own antoher property. That makes it easy for a person to go in front of a judge and say it is his homestead (it happens).
Here in Texas - that makes it a two year redemption. That’s a lot longer than 6 months!
About three years ago, I bought a study guide off this site by Darius Barazandeh “Texas houses for Pennies”
I have made well over $100,000 profit in tax sale investing since then, so if you are serious, I think you should probably buy his book. In my case, it was a big return on investment!
My biggest lesson has been:
It’s very important that you research the title before bidding/buying!
Start by reading the state law/statutes regarding tax sales.
Best of luck.
Bighat…
no cattle
THANKS FOR THE INFO BIGHAT.
IT IS GREAT THAT YOU HAD MADE THAT MUCH MONEY. HOPEFULLY I CAN MAKE SOME MONEY DOING THIS. I ONLY PURCHASED ON LIEN. IT WAS MY FIRST TIME DOING THIS.
AGAIN THANKS