Tax Lien Sale On Mortgaged Property- Florida
I sold a condo in 1997 and hold a mortgage on it. I have just received notice that the property owner has not paid taxes in two years and the property will be auctioned in two weeks. (he is current with the mortgage which has 1 year to go) What are my rights as the mortgage holder in this situation?
I'm no attorney, but I would think you would have to go to the sale and bid like any other lender, "out bid everyone", and then take possession of the property again.
In Texas, the current owner would have up to a year to redeem the property from the person who purchased it at the tax sale auction, if it was their homestead.
If it is a tax LIEN you can pay the taxes ahead of the auction and foreclose on the property. If it a Tax DEED then you need to pay it immediately as someone like me will go to the auction and buy it rendering your mortgage useless. I also make deals to the mortgage holder to pay 10 cents on the dollar for whatever is owed and pay off the tax deed as well, to give you an idea of the seriousness of this. If it is a tax lien situation (2 years) and not a tax deed(3 years or more) then you are in trouble, but not seriously. It is cheaper to redeem the taxes and just foreclose rather than paying someone like me interest on the taxes.
Good Luck,
Kyle