Tax Lien Investing
I've been reading up on this, and have become very interested in it. It looks to be rather inexpensive, in terms of most real estate ventures, and the risks look very manageable. Has anyone had any experience with this type of investing?
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Knowing that tax liens are senior to most all other liens, means that other liens get wiped out. I know it is rare, potentially 99.5% as you described get redeemed, to get to foreclose and take the title. but, my question is about the percentag eof interest in the property.
For example, if you buy a $5,000 lien on a $100,000 house with a $65,000 mortgage and it is not paid and redeemed, you get to foreclose, and according to what everyone says - the mortgage holder is "wiped out".
I understand the mortgage is junior to your lien but there is plenty of value for the mortgage holder to collect as well as for you to collect plus the interest owed to you. what happens in this situation, is the mortgage wiped clean and you get a $100,000 property? Doesn't seem right