Do mortgages carry over on tax deed sale properties

[dayana]

Hi I have a question about mortgages on tax sale properties.

I would like to know if when a tax sale property is purchased does it carry over the mortgage a previous owner may have had on the property or if the previous owner is still responsible for this debt with the title being clear?

The reason I'm asking this is because usually the mortgage is secured by the title, not the previous owner themselves.

If anyone knows, Please give some further information that would be greatly appreciated.

Thanks in advance,

Dayana

[dreamweaver]

Was this "deeded" property, or was this back taxes that you paid that gives you the right to foreclose?

In some states the deeded properties are OK to sell. Others require you to "quiet title" those properties. Quiet title is the procedure that you use to foreclose on back (delinquent) tax properties. During quiet title all parties with a recorded interest are given the right to pay the taxes and stop your lein process. If you are investing in these properties it is VERY important that you are capable of doing a basic title search before investing if you think you might end up with the properties. And yes, the mortgage is still owed, and if the amount is great enough they might redeem the tax and therefore make your position moot. Or, you may choose to pay the mortgage and keep the property yourself.

[dreamweaver]

Oh....your deeded properties usually have a limited title search. You can't get a mortgage without an extended title search. Thus...the quiet title process. It "quiets" all naysayers on the title and establishes definate ownership.