Posted by Gary CA on August 09, 2004 at 19:03:01:
You will need to check the Michigan laws to see which liens and/or improvement bonds will survive a real property tax sale.
Here in California, taxing agencies which collect their own taxes, such as cities, have the option of not consenting to the tax sale, thereby allowing their liens to survive the tax sale. In general, all private liens are extinguished while those of public taxing entities and community improvement bond issues remain.
In New Mexico, however, both public and private “perfected interests” recorded before the tax lien arose remain in place. Each state has its quirks - you need to know these before participating in a given state’s tax sale.
For example, some of the properties in the recently concluded County of San Bernardino tax sale had City of San Bernardino abatement taxes in excess of $10,000 (plus interest and penalties ~ another $10,000) which survived the tax sale, and based on the bidding on some of the properties involved, I have a feeling some buyers are in for a distinctly rude shock. I talked to the officials from the city of San Bernardino, and they informed me that these abatement amounts were from cleanup and demolition of “crack house” type properties.