Does Tax Lien Foreclosure Wipe Out Mortgage?
Hi everyone. A tax lien holder has first position lien and can foreclose on the mortgage. My question is if when there is final judgement and mortgage is foreclose on, is it just that the bank can't have this property as collateral but the bank will go after the guarantor, or once the mortgage is for a close down it is basically wiped out clean.
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Wayne Brooks
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Wayne Brooks#1 Foreclosures Contributor
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The "mortgage" simply places the property as collateral. The mortgage getting wiped out does not affect the debt to the lender, and yes they can still attempt to collect.