Tax Deed sales/Auctions

[Jonathan Newsome]

I’m currently in a Tax Deed state (Virginia). I would like to soon attend these auctions to eventually purchase properties, once I have enough education on how exactly the process works.

With Tax Deed states such as Virginia, after winning a bid on a property and making payment for said property, is the transfer of that Deed ‘Free and Clear’ or does it come with a mortgage/balance. We’ll keep this simple and say that there are no other liens or encumbrances against the property, aside from the delinquency on taxes and mortgage balance.

Ex: property ‘A’ market value is $200k

Mortgage balance: $80k

Delinquent Tax balance: $5k

Investor wins auctioned property for $20k

Does the mortgage balance get wiped?

Is a quiet action title necessary?

Am I free to market and sell property after the title transfer?

This is from the Fairfax county website, “Please note, the Code of Virginia does not authorize the sale of tax lien certificates. Sales only occur at public auction, and the sale conveys title to the property itself.”