Tax Deed Sale

I am looking to purchase a property at a Tax Deed Sale. I was curious though. This property has a home on it. Does the mortgage stand on a tax deed sale. I know on a foreclosure, any thing overseeing the lien stands. Ex. if a 2nd mortgage goes into foreclosure the 1st mortgage still survives. Will the mortgage survive a Tax Deed Sale?

Comments(2)

  • bizzieb9th October, 2003

    It is my understanding that the mortgage does not survive the Tax Deed sale. I believe the Hillsborough Tax Assessors web site has more details on the elements on the transaction.

    Good Luck.

  • edmeyer17th October, 2003

    nchachula,
    My guess is that the property you are interested in is free and clear or there is a very small mortgage. If there is a substantial note, the note holder would likely cure the tax default and file a notice of default.

    My own research has confirmed this likelyhood in that a great majority of tax sale properties are unimproved land.

    If there is a mortgage and the noteholder is unable to cure the tax lien you may be able to buy the note at a deep discount , cure the tax lien and start a foreclosure.
    You will either make money at the foreclosure sale or own a house well below market.

    Let us know the situation. I am particularly curious if my guess is wide of the mark.

    Regards,
    Ed

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