House lost to auction for taxes

Usually, your lender has a lien regestered against the property.  When the property is sold (at auction or otherwise) the lender will be paid from the finds used to by the house.  The lender will get paid first if they had a higher priority claim than the IRS.  The lender will usually be paid after the IRS if the IRS has the higher priority lien.  If the money paid for the property does not cover all the existing liens, then the homeowner is usually still responsible for the unpaid portion of the debt.

If the auction price covers the mortgage lien and tax lien, then you should owe nothing further to the lender and IRS.  Check with your county (the county in which the home is located) to find out which liens were satisfied in full, and which debts were left unpaid by the auction sale.  Some lucky people find that the property sold for so much money, that they get the surplus profit.  The county will know if you are to be paid any surplus funds from the sale.

Good luck!

This is not to be construed as legal advice.  It is merely general information.  No attorney-client relationship is formed unless you have a signed retainer agreement with Dwyer & Associates LLC, New York, NY.

Tanya P. Dwyer, Esq.
Principal | Dwyer & Associates LLC
11 Broadway Suite 615 | New York, NY, 10004
Tel: 212.203.4965 | Fax: 347.332.1737
http://dwyerlawnyc.wordpress.com/attorneys/