Which liens are removed at a tax sale? If you are serious about investing in tax sale properties, then it is important to know which liens are removed at a tax sale. It varies from state to state, but it is easier to list the liens that are not removed. Any federal lien on the property is not removed at a tax sale.
This would include IRS liens and government liens. When investigating the property always check the current liens on the property before purchasing. This doesn’t necessarily mean that all other liens will be erased at the time of purchase from the tax auction.
For example, in Pennsylvania any lien that is filed after the judicial sale is not removed when you purchase from the repository sale. This means that a Property Owner’s Association may have a lien on the property that is removed, but they can file another lien once the tax foreclosure proceedings have begun that will stay through tax auction.
This is why it is important to call the county and the owner’s association if there is one on every property. Be sure to write down the date, time, name of the person, and what was said. It may be good to even record those conversations so you will have them as a reference.
In Arkansas I called with the same questions three times, spoke with two separate people, and received three different answers. This is why it is a good idea to take notes and call more than once.
To find out exactly which liens are removed at a tax sale, call the county and speak to the person that oversees tax auctions. Don’t just call once, call at least twice on different days.
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