I really need help with this answer because despite an age of information, I am having a hard time finding the answer to this question online. If you purchase a property in California through a tax deed sale and you win the bid....are you responsible for any or all mortgage on the property? If not, do you get the deed to the house after you are the winning bid at the tax sale? Help very much appreciate. Thank you.
Attorney · Orange County, CA · Member since 2017 · 242 posts · 99 votes
8y
@Brad Carter, if you are the final bidder at a tax sale, you will receive a tax deed. The tax sale will eliminate mortgage holders that received notice of the sale, but it will take a mortgage holder asleep at the wheel to allow a tax sale and elimination of the mortgage. Note that the tax sale does not eliminate certain superior liens, such as an IRS lien on the property. I would suggest that you research a tax title certificate, which is a private company that does the necessary research and provides a guarantee that will allow you to obtain title insurance on the tax foreclosed property.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
8y
In California, tax deeds convey title free of mortgage liens. The mortgage holder could only challenge the sale if they claim they didn't receive proper notice prior to the sale.
@Kyle J. Thank you so much! Is there a time limit for the mortgage holder to challenge the tax sale? Is it the same as 1 year when the owner can challenge the sale?
Attorney · Orange County, CA · Member since 2017 · 242 posts · 99 votes
8y
@Brad Carter, if you are the final bidder at a tax sale, you will receive a tax deed. The tax sale will eliminate mortgage holders that received notice of the sale, but it will take a mortgage holder asleep at the wheel to allow a tax sale and elimination of the mortgage. Note that the tax sale does not eliminate certain superior liens, such as an IRS lien on the property. I would suggest that you research a tax title certificate, which is a private company that does the necessary research and provides a guarantee that will allow you to obtain title insurance on the tax foreclosed property.