Tax Sale Question?
When someone does not pay the property taxes, I know the mortgage holders are notified before the sale. My question is are the judgment or lien holders notified as well??
When someone does not pay the property taxes, I know the mortgage holders are notified before the sale. My question is are the judgment or lien holders notified as well??
Sly-------------------
That is a function of the state statutes related to the collection of delinquent property taxes. And every state has a different set of laws and system.
In at least two states, I understand that the mortgage holders are not wiped off the property with a tax sale. In that case, I suspect that the mortgage holders are not notified of the tax sales. The two states are NM and ME.
In CA and OK, the states which which I am most familar, the entity conducting the tax sales (Tax Resales in OK) is required by law to notify all "parties of interest" in the property, which would include lienholders, judgment holders, and the like. If, however, the property notice of sale is not sent to the party of interest, that encumbrance survives attached to the property after the tax (re)sale.
You should study the state laws related to the collection of delinquent property taxes in the state in which you are interested. Or else consult an attorney knowledge about tax sales there. I am not an attorney.
Good Investing***********Ron Starr***********