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?
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.
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