Foreclosure and back taxes

[Phil Hucke]

If a property goes into bank foreclosure and gets auctioned, but also has unpaid property taxes,  are those unpaid taxes carried over to the high bidder, or does the bank pay them off?  In ohio. 

[Nancy Truong]

Generally, government liens such as tax liens have higher priority than mortgage (bank) liens. If the bank doesn't pay it than the third party buyer ends up paying for it. It doesn't get wiped out since mortgage liens are junior. Some bank will pay off the liens because of certain requirements. For instance, FHA loans are backed by government so banks will need to clear title in order to get their money back if it goes into REO.

- Nancy Truong, Texas Attorney