So I'm trying to do some research on a property that I want to bid for at an upcoming foreclosure auction. This will be my first auction I actually bid. I went to the deeds office and found no other deeds besides the lien that is being foreclosed, and the deed for the property. The confusing thing I found was under the property assessor page it shows the owner/ETUX, and a C/O which is someone else. The husband died many years ago, but his wife passed away just 2 years ago, and the house has been vacant ever since. I then noticed that there was a posting for delinquent tax sale earlier this year. So I'm assuming that that person is the person that bought it at the tax sale. I saw that the taxes were paid in March and May of this year. In TN there is a 1yr right of redemption. So my question is, if I do decide to purchase at the foreclosure auction, will I then have to file for the redemption, or is there something else I need to do? I know the tax sale will wipe all liens, but by me purchasing at the foreclosure sale, does that not give me the right to redeem the property, or is this a mistake that the trustee made and the sale will be marked null and void? Thanks for any advice.
If your local laws indicate that a mortgage lien is junior to a tax lien, the trustee likely made a mistake. However, the trustee may be able to challenge the tax foreclosure due to, e.g., improper service of process. (Sometimes a big lender's departments fail to adequately communicate these things to each other.) If so, and again dependent on local laws, the trustee may be able to redeem the property from the tax sale. Your purchasing at trustee sale may or may not give you the right to redeem; that is something you should talk with an experienced local real estate attorney about since it typically involves a lot of state-specific law. Good luck.
@Jeremy Bridges Tax sale laws vary tremendously from state to state. Especially since this is your first foreclosure sale. I would talk to an attorney familiar with tax sale and mortgage foreclosures. It will cost you some money but you will also get a good education. Better to spend a couple hundred bucks than to lose thousands because of a quirk in the law you didn't understand..
Sorry, @Jeremy Bridges but you've been beaten to the punch by whoever purchased the property at the tax deed auction. The bank either hasn't yet realized that someone else already owns the property or they're going through the foreclosure process for a procedural reason. One of two things is going to happen next: (1) The bank is going to write off the mortgage to bad debt or (2) They'll file for a right of redemption based on lack of due process, etc. It all depends how much was remaining on the mortgage. Either way, "that dog ain't gonna run"!