What happens to a Mortgage if one exists after a tax sale. Obviously, the previous owner has a right to redemption. what about the Mortgage lien holder.
Not certain of the specifics in your area, but locally, if the mortgage holder fails topays taxes due, the lose their loan. It is very rare that this happens for obvious reasons, so I would encourage you to look very closely as the lender either knows something and elected not to pay the taaxes or they bungled it.
I think the former is more likely. Is the home a meth house?
If we are talking about a tax lien or certificate you, do not own property but a bad debt. This bad debt is normally given a first lien position ahead of all mortgages, deeds, judgements but will be subordinate to state tax liens.
Normally if the tax lien or certificate debt is not paid within a specified time frame you will be required to foreclose on the property and all subordinate liens are dissolved.
Now in a Tax Deed purchase you will normally own the property and most all-subordinate liens are dissolved.
Do understand that the rules of this game differ from state to state and county to county.
[addsig]
My understanding is that Pennsylvania is such a state. But the real issue is that each state has a different proceedure and different set of rules for tax sales. You need to find an expert for your state and get their advice.
Not certain of the specifics in your area, but locally, if the mortgage holder fails topays taxes due, the lose their loan. It is very rare that this happens for obvious reasons, so I would encourage you to look very closely as the lender either knows something and elected not to pay the taaxes or they bungled it.
I think the former is more likely. Is the home a meth house?
Now this is what I call a what if question!
If we are talking about a tax lien or certificate you, do not own property but a bad debt. This bad debt is normally given a first lien position ahead of all mortgages, deeds, judgements but will be subordinate to state tax liens.
Normally if the tax lien or certificate debt is not paid within a specified time frame you will be required to foreclose on the property and all subordinate liens are dissolved.
Now in a Tax Deed purchase you will normally own the property and most all-subordinate liens are dissolved.
Do understand that the rules of this game differ from state to state and county to county.
[addsig]
is there any state where a mortgage survives non-redeemed property?
My understanding is that Pennsylvania is such a state. But the real issue is that each state has a different proceedure and different set of rules for tax sales. You need to find an expert for your state and get their advice.
Also New Mexico, a tax deed state, if you buy the property you take it subject to all existing liens.