Posted by Stan on August 13, 2007 at 08:43:23:
Foreclosure does not wipe out the tax lien. That will follow the property. For example, prop has 1st for $100k and 2nd for $35k. In this example, the 1st is foreclosing. There is alos a tax lien for $50k. At the auction, the bank accepts a bid for $95k. The first will be satisfied (possible with a judgement for the remaining amount on the first). The 2md will be wiped out (since they elected not to protect themslef on the bid). However, the $50k tax lien will remin with the propety. The new owner will have to satisfy that.