Tax Liens, Question ? (2)

If you take title to a property via a tax lien foreclosure sale, are you responsible for any liens, encumbrances etc. that are related to the property ? after you take title ?

Usually, you’re not responsible. There can be situations in some states where, for example, a lienholder didn’t get notice of the tax sale and the sale is either considered void (you’ll get your money back in this situation), or worse yet, the lien is considered to have survived. Some federal liens can survive as well.

Everyone needs to realize that with tax sales, each state has its own rules. You need to be thoroughly familiar with the tax sale law of your state before putting your money at risk. The best place to start is with your state’s statutes governing tax sales.