tax lien question
I'm new to this so work with me here. The 2 questions I have are: You purchase a tax lien on a property that has an existing lien on it for a mortgage,or maybe even a second mortgage. If the person does'nt pay up, what happens to the lien form the mortgage? What if during this whole process, the property owner files for bankruptcy?
In most states the tax lien is senior to all other liens. This includes mortgage and mechanics liens. Once the taxes are satified, all other liens are wiped
out. If the property owner files for bankruptsy during the process your tax certificate will more than likely be redeemed by the state for what you purchased it for. No interest or per annum. Let me double check on the states obligation. I'll get back to you with a definative.