Posted by andrew feazelle on July 12, 2011 at 21:39:02:
When a property is being auctioned in CA (LA County), because of delinquent taxes, does the purchasing of the property at the auction dissolve any mortgage notes, HOA liens, etc… on that property?
When the person that is delinquent in their taxes for this scenario is dead, can it be assumed they are not in bankruptcy or owe Federal Taxes to the IRS, or could they still be accountable for Federal Taxes, unpaid while alive?
Re: CA Tax Delinquency Auctions - Posted by Bill H
Posted by Bill H on September 24, 2011 at 14:40:03:
Andrew: As a general rule…tax lien/tax deed sales…WIPE all other liens from title.
They do not ELIMINATE them…they just become unsecured liens…they still exist…but not against the property that was sold at the tax sale.
There are HOWEVER various exemptions to this in some states.
NEVER assume anything…do your due diligence. IRS Tax liens have an automtic 120 days right to redeem… they are NOT automatically wiped from title.
As in all other forms of real estate investment…INVESTIGATE…before…you INVEST.
Take nothing for granted…it can and will come back to bite youe.
Good Luck,
Bill H