once the tax lien has been purchased and you can get the property after 3 years(Arizona) won’t the bank who the mortgage is through take the house before you would ever get a chance to? Or does the tax lien certificate hold more importance than the bank loan. No one has been able to answer this question for me.
Howdy Dubt:
From all that I have read and learned the bank had a chance before the sale to pay the taxes and then foreclose on the borrower for default. Tax foreclosures take 1st position over all voluntary liens the owner places on the property. Any excess proceeds from the tax sale have to be applied for the interested parties like the lien holders and even the borrower.