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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Junior liens and interests are wiped off title by a foreclosing senior lien Posted by Ward-CA- on November 14, 2001 at 6:29 AM In Reply to: What happens in a tax deed sale with the lenders unpaid debt? posted by Olga on November 13, 2001 at 2:58 PM : I have a question: : A house is being sold in a sheriff sale for unpaid property taxes and the lenders that hold the first and second mortgages started foreclosure proceedings. Can the second mortgage holder buy the property in the sheriff sale for the value of the taxes overdue? What happens with the owners'debt to the lenders? =•=•=•=•=•=•=•=•=•=•=•= Olga, Yes the 2nd lender can buy the property at the Sheriff's sale. In most jurisdictions in the US property taxes are the most senior lien against a property and generally the auction sale of property taxes will wipe off the title to the property all other liens and interests. There are usually exceptions where such a forced sale would wipe out some other county lien. If the property owner ever goes back into ownership of a property she lost in a forced sale, such as a tax lien sale or a lender's foreclosure, then whatever liens and interests that were wiped off the title of the property would automatically reattach to the title as if there hadn't been a tax or foreclosure sale. Most of the time though, lenders will pay delinquent property taxes long before the county ever does a tax sale. Then, under the theory of advances, the lender will insist that the property owner immediately reimburse the lender, under threat of the lender foreclosing for same. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I have a question: : : A house is being sold in a sheriff sale for unpaid property taxes and the lenders that hold the first and second mortgages started foreclosure proceedings. Can the second mortgage holder buy the property in the sheriff sale for the value of the taxes overdue? What happens with the owners'debt to the lenders? : =•=•=•=•=•=•=•=•=•=•=•= : Olga, : Yes the 2nd lender can buy the property at the Sheriff's sale. In most jurisdictions in the US property taxes are the most senior lien against a property and generally the auction sale of property taxes will wipe off the title to the property all other liens and interests. There are usually exceptions where such a forced sale would wipe out some other county lien. : If the property owner ever goes back into ownership of a property she lost in a forced sale, such as a tax lien sale or a lender's foreclosure, then whatever liens and interests that were wiped off the title of the property would automatically reattach to the title as if there hadn't been a tax or foreclosure sale. : Most of the time though, lenders will pay delinquent property taxes long before the county ever does a tax sale. Then, under the theory of advances, the lender will insist that the property owner immediately reimburse the lender, under threat of the lender foreclosing for same. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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