If a county seizes property for taxes, does the mortgage company lose its claim on the property?

Asked on September 22, 2012 under Real Estate Law, New York


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If a county or city taxing authority seizes the property pursuant to a tax auction then it could be in the first or second lien holder position. You need to determine whether your mortgage holder is the first position or the second position but it doesn't necessarily mean that the mortgage company loses its claim.  Check with your mortgage company to determine if you need to file for a loan modification a reaffirmation alone or if you can buy it back.

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