Tax Liens Sales

what happens to a tax lien when a home forecloses?

What happens to a tax lien that your are supposed to hold for three years when the home goes into foreclosure and the bank takes the home back? Do you get the deed or just the money you spent for the tax lien back with interest? i am in the market to buy a propery at a tax lien auction. what happens after i hold the tax lien pay the taxes for three years if the home goes into foreclosure before the three years are up?

Public Comments

1. A tax lien is a notice that the feds or the state has an interest in your house. When your house is sold in foreclosure, the "senior" creditor gets paid off first, then the next senior, etc. Usually, but not always, the mortgage is the senior creditor, and if there is no money left over, the other lien holders get nothing. If they are foreclosing, as the owner of the house, you get nothing.