Hi Biggerpockets. I found a property at a county tax auction website, while researching i found the property is also on auction.com possibly by lender about two weeks after the tax sale. Still waiting for title search. Mortgages are supposed to be wiped out at tax sale but since a private auction is already scheduled does that put the tax auction winner at risk. can someone buy at tax sale and still be foreclosed by a lender?
Attorney · Cabot, AR · Member since 2016 · 130 posts · 39 votes
7y
What state are you looking in?
If you are looking in Arkansas, I am very familiar with the tax auction situation here, and might be able to answer some of your questions. Our firm handles the confirmation of many tax deed properties.
Wholesaler · Lehi, UT · Member since 2015 · 333 posts · 144 votes
7y
@Sukhwinder Chand Taxes are a first position lien and any lender/property owner would have received notification prior to the auction to let them know of the deadline they need to pay off their taxes in order to stop the sale. It is possible that the property listing on auction.com is unaware of the unpaid taxes and the tax sale to take place prior to the auction.com sale date for the tax auction. If you purchase at the tax auction and you are the winning bidder then you will get a tax deed which you will want to file for a quiet title. If there is any recourse for the lender or homeowner it would be in that timeline. I don't know the specifics involved but there are some states that allow for a redemption even though the property has gone up for a tax auction. 5 states are what is called a redeemable deed state. Where is your tax auction taking place?
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
7y
Chances are the lender will pay the taxes day of or day before the sale so there will be no tax auction. If you want it you'll probably have to buy it at the auction.com sale.
So the property was in San Bernardino County CA. The property disappeared from auction.com a few days after tax sale. It sold at the tax sale for almost 80% percent of retail and it had other small municipality liens. Now almost a month later it still shows the same people as owners. Seems like a long time for it to transfer ownership. What if the owners file bankruptcy during this time since the new owner is not recorded?