Tax Liens And Mortgages
I am in Texas and am wanting to bid on a house that is being auctioned off. The house has a 1st and 2nd Mortgage. The owner of the house has good title with no other liens except for the tax lien. If I buy the house at the public auction, will I have to pay any of the mortgages? Also, I have have the same question for houses being sold because of past due Home owner Associations, would the mortgages survive?
Let me get to your questions:
I am in Texas and am wanting to bid on a house that is being auctioned off. The house has a 1st and 2nd Mortgage. The owner of the house has good title with no other liens except for the tax lien.
- I assume the owner has not other liens except for the tax lien and the 1st and 2nd mortgages, correct?
If I buy the house at the public auction, will I have to pay any of the mortgages?
- if it is purchased at a tax sale then the mortgages would be wiped out provided that both the holders of the 1st and 2nd mortgage recieved adequate notice of the sale. You should visit the sheriff's office in the county where the property is located to check notice. Also look to see if the mortgage lien has been assigned to another bank or finance company. The current holder of the lien should be notified. Also make sure the property description is exactly as it is described in the notice of sale. If any of these elements are missing the mortgage will still exist on the property.
Also, I have have the same question for houses being sold because of past due Home owner Associations
- HOA fees will survive.
Best of Luck!
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Question: I am in Texas and am wanting to bid on a house that is being auctioned off. The house has a 1st and 2nd Mortgage. The owner of the house has good title with no other liens except for the tax lien. If I buy the house at the public auction, will I have to pay any of the mortgages?
Answer: It really all depends who is foreclosing! If the 1st is foreclosing and the 2nd is not related to the lender the 2nd will go away if they are not there to bid and protect their interest. If the 2nd is related to the 1st then they will often combine the two in a foreclosure proceeding by legal process or bid up to the amount of the two combined.
If it is the 2nd that is foreclosing and not related to the 1st than you will have to pay off the 1st in order to take the property.
The tax lien will have to be paid unless it is found to be not valid!
Question: Also, I have the same question for houses being sold because of past due Home owner Associations, would the mortgages survive?
Answer: HOA groups regulate everything from how homeowners paint their houses to what ornaments they put on their front lawns. The associations, which govern developments also collect fees and maintain common areas such as private streets, pools and parks.
Many complainants of capricious and heavy-handed enforcement by their associations but the most contentious issues are the right association boards have to foreclose on homes.
By law, homeowners associations can put a lien on the home of a member who owes fees and, if the debt is not paid put the house up for auction. The only recourse for the homeowner is to sue to block the action.
Normally the mortgages do survive!
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I have a question about taxliens in florida,
right now there is a property that has a taxlien on it for a huge amount due to the owner having duplicate homestead exemptions for 10 years, once the lien is filed how long will it be before its vailable to an investor.? thanks
Quote:
On 2004-08-10 19:59, GeneralSnafu wrote:
Quote:
On 2004-08-02 15:11, darel_seymour wrote:
I am in Texas and am wanting to bid on a house that is being auctioned off. The house has a 1st and 2nd Mortgage. The owner of the house has good title with no other liens except for the tax lien. If I buy the house at the public auction, will I have to pay any of the mortgages? Also, I have have the same question for houses being sold because of past due Home owner Associations, would the mortgages survive?
In Florida, the mortgages are paid in order of seniority. However governmental liens can still supercede all other liens.
Example: In Florida, if you purchase via a tax sale, code enforcement liens will stay with the property if there was not enough overbid money to pay them off.
If you are bidding at a governmental lien foreclosure, all other non governmental liens will be wiped out. Other governmental liens will stay with the property.
Example: Buying at a tax lien foreclosure still leaves you subject to an IRS 120 redemption period.
If you are bidding on a second mortgage foreclosure, you will have to assume payment of the first mortgage. Assuming there is a homeowners association lien on the property too, the association as the 3rd lien holder would get wiped out.
If the homeowner's association is the one foreclosing, the first and second mortgages will remain with the property.
Just remember that all senior loans remain, and all junior loans are wiped out.
<font size=-1>[ Edited by GeneralSnafu on Date 08/10/2004 ]</font>
Redemption Period is 2 years in Florida and they only become of value when they are sold to another party, redeemed or you are able to take the subject property.
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The county lien for cheating on homestead exemption will not fall off as it is a governement lien.
For it to go to sale one of the holders of the tax certificate must ask for it to be taken to sale
the governmental lien would stay but how long does the homeowner have to pay it off? is it 2 years in fl?