Posted by Tim (Atlanta) on December 30, 1999 at 07:07:32:
It will depend on the state the tax lien certificate was purchased in. In Georgia, once the redemption period is passed, and you get the tax deed, all mortgages except IRS liens are eliminated. You are correct in that all parties with an interest in the property must be notified before foreclosure of the tax lien. Perhaps you should wait until the investor gets the tax deed, then purchase that from him. You won’t make any interest from this tax lien, since it has already passed the redemption period. You will need to purchase the tax deed at a substantial discount from the fair market value of the property.
I am interested in purchasing a tax lien certificate from an investor that buys them at the tax sales and have a question about the process. The redemption period has already passed and the prove up is being done now. My question is, when the judge issues a tax deed, do the underlying mortgages drop? It seems to me that it works the same as a foreclosure situation. As long as all junior mortgage holders are notified, and they take no action against the suit, then they should drop. Is this true?
The answer to your questions is “yes”. But if you have to ask these questions then you need to hire a knowledgeable attorney to review the transaction. There are other more complex questions you havent asked.