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Updated about 1 year ago,
California Tax Deed Sale
I am having great difficulty interpreting California tax code regarding tax deed sales and need help for the following scenario:
Minimum bids are initially set to total of all outstanding tax liabilities (including penalities and interest); however, in the case of no bids, the county may elect to re-offer the parcel at an even lower starting bid. Suppose the original minimum bid (outstanding tax liability) was $100k and after receiving no bids, the parcel was reoffered at $10k and sold for $15k. Would the buyer/auction winner receive title free of all past tax encumbrances or will the buyer immediately be hit with a $85k past due tax bill and property lien (the difference between the $100k old tax liabilities and the $15k payment received from settling the auction)?