County tax deed sale - private liens

[Rushabh Sheth]

Hello all,

I'm located in California and I have a question about a California county tax deed sale. If you win the bidding on a tax deed and receive the deed to the property (with or without the redemption period), are the private liens wiped out? Private liens include:

- mortgage liens
- homeowners liens
- mechanics liens

I understand that government liens (eg. state tax liens, IRS liens, etc.) are not wiped out and still remain. But I would like confirmation that the private liens are indeed wiped out. Thank you.

[Rich Hake]

Thank you G. D. for posting the California statute.  Having bought items at tax DEED sales in NY and in CA, it is important to do ALL of your homework---rules vary by state too.  Once done, you should be aware of who else may have rights.  

A tax sale is not a traditional sale with a tribe of professionals to help or blame if it does not go well, and generally without insurers to make a claim on--(before anyone gets angry, I am part of that tribe).  

Since you are going to proceed without the aid of professionals or title insurance in most auctions, you should accept that "you are on your own" as part of the cost of doing this business (if this were easy everyone would do it)--and read up on the statute, the local rules, the title report and (for goodness sake don't forget) the neighborhood, the property and the owner.

As far as the good deals not showing up a the auction, that's usually TRUE!!!   Why? (I think this is an obvious one...) The tax sale list is a "motivated seller" list:

Because the list is published early, the title can be searched early, and owners, banks and lienholders can be contacted before the auction---SO---I "mine" that list before every auction in hopes of getting a good deal--on a fully researched property, with the benefits of title insurance, insured closings via escrow, with disclosures and most of all-- a happy seller (yes, this is important-- I have seen a confused owner who wanted to use an auction winner for target practice because they thought they were getitng scammed by a tax sale winner).  

Good luck out there.