Tax delinquent property

[Devonte Perdue]

Hello, I'm a beginner investor in ohio. 

Question: when marketing to a person that has a property that is behind on taxes, what happens to the mortgage loan on that property?

[Bruce Lynn]

I guess the easy answer is that it depends...... as you state....most of the time people seem to escrow taxes and insurance, so it is tough to get behind on taxes.  The lender will pay them.  In some cases  if the taxes are not escrowed, the lender will pay them at some point if there are lawsuits or tax liens.   You may want to find an Ohio expert to discuss how tax liens/deeds work in your state.   I think there is a person named the tax lien lady that works your state or lives there.

There may be a rare circumstance that a tax lien/deed auction could wipe out the mortgage,but I would think that is rare.  If it does happen, then you want to check on redemption rights.   Here in Texas the owner or lienholder might have a couple years to buy it back or challenge the sale.   So even if you thought you won, they come back and pay you back and get the house back.   This all is a very simplified answer, but might give you the basics.

I would think you would want to market to lien free homes or homes with liens small enough compared to the market value.   So that you could by the home, pay off the taxes and the mortgage and still have room to make a profit.