Tax sale question?

This may sound dumb, but if you purchase a property in a tax sale, are you resposible for the mortgage if there is one on the property?
I know you assume all leins if any, but not sure about the mortgage?


In tax sales, the mortgage goes away. Most secondary liens go away. IRS may go away if they are properly notified. Property Taxes never go away. This is from what I remmeber when I used buy ‘over the counter’ throught the az & FL treasurer website. BUt you need to read up on your states website to figure out what the process is. What state are you in?


I’m in Ohio. I’ve bought several foreclosures at different Sheriff sales, but never a tax sale. I know the process pretty well just didn’t know if ithe mortgage went away like a foreclosure did. Thanks


depends if it’s a judicial or non-judicial sale. if its judicial, it mean that they took the time to go through the court system and sell the property “free and clear” of all liens. if its a non-judicial, its a “buyer be aware” sale.

When you say “tax sale” are you talking about buying the property tax lien at auction? If so, you are only buying the tax lein and have not rights to the property. There is a period of redemption in which the HO can buy it back. If you make it through the redemption period, then you can foreclose and get the tax deed. At this time, the property becomes yours and the mortgage goes away.

As far as I know, if its a tax sale, you only have to worry about the tax liens, and mortgage falls short because the government wants the money first.

The reality of the matter is that if you buy a tax lien on a property with a mortgage, the holder of the mortgage is not going to let you foreclose. They will redeem the tax lien (you have to notify them you are going to foreclose) before they will loose the property and the mortgage. Unless of course the mortgage is less than the property taxes…highly unlikely.

How many average homeowners do you know can pay a $3000 property tax bill. Especially if it is outside their mortgage. There are a lot of people that can’t pay it. At the last minute, they go ask uncle bill for a loan. and sometimes he comes thru. Each state is different, either the are tax deed state or tax lien state. Here in florida and in Arizona. We deal with tax liens. After 3 years you can apply for a deed, pay off all the liens associate with the property. Then see it go to auction at the courthouse steps, and sometimes get it back free and clear for the most part