Tax Liens In Pre-Forclosure
Hi Guys,
I'm new here. I'm interested in bidding at an upcoming Tax lien auction here in Texas and it is my first time. I've been doing my research but can't seem to find a clear answer to a particular question I have. Is it a good idea to buy a lien on a property that is in pre-forclosure?
Most Popular Reply
In general there is no harm in it. A tax lien comes before the bank so you generally have little or no risk because of the foreclosure. However if the bank is foreclosing it is unlikely you will get the property. They will simply pay the lien off. Also you may not get much interest becuase the bank may pay off soon if they are foreclosing.
However as Wayne Brooks said the laws vary quite a bit from state to state. Texas law are very different from what I am familiar with. Good luck - Ned