If a county takes possession of a property due to back taxes and I purchase it from them, can the mortgage company hold me liable for the mortgage?
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If a county takes possession of a property due to back taxes and I purchase it from them, can the mortgage company hold me liable for the mortgage?
I need to know I am in no way part of the original mortgage or loan. The property was foreclosed on.
Asked on August 24, 2011 Oklahoma
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If the real property that you are interested in purchasing at a tax sale has been already foreclosed upon by the lender that held the first mortgage (or deed of trust) and legal title is in the lender's name presently with no recorded mortgages (or deeds of trust) of record but the county tax assessor is having a tax sale to pay delinquent taxes, you can acquire the property with a successful bid and take legal title to it without having to worry about servicing any debt load on it.
The reason is because the mortgage (or trust deed) was wiped out by the lender's foreclosure upon the property.
You need to be aware that some states have statutes allowing the former owner to redeem his or her property lost in a tax sale by paying the amount paid at bid by the new owner plus assorted fees, costs, and accrued interest during a certain period of time, usually up to one year.
Good question.
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