What happens to the mortgage?
if i purchase a home at a tax auction, what happens to the mortgage? i know there was one, b/c 5 years ago, it was filed along with the deed at the courthouse. am i now obligated to pay that also or is that the former owner's deal? also, are there federal taxes on homes? i am thinking about buying the property at the state level and am wondering if i will also owe federal taxes. I am obviously very new at this. i am currently a real estate agent, but am finally taking the plunge into creative investing. Thank you to anyone with info.... 
[ Edited by solitairejunkie on Date 05/20/2003 ]
It all depends on the state that you are in and how they auction the taxes. You should read these two articles called Tax Sales and Tax Deeds - Some Basics for Your Success - Part 1 of 3 and Tax Liens and Tax Deeds - Some Basics for Your Success (Part 2 of 3), it will give you a better understanding of tax auctions. From my knowledge, there are no federal taxes. The taxes they auction are people who do not pay their property taxes, which is different from county to county.
Tanya