Tax Auctions

[Daniel Peavey]

tax auctions:  any one have any success with tax auctions?

[Ned Carey]

@Daniel Peavey I bid only in MD and until this year only in Baltimore city. Many auctions are online and all the ones I bid on are. That seem to be the direction most sales are moving. 

The difference between a tax lien and a mechanics lien is the tax lien is in 1st position. Most liens are based on the date they are recorded in the land records. In most states the tax lien is in first position jumping ahead of all others. When a tax lien is foreclosed it wipes out all other liens. 

So a tax lien would wipe out a mortgage, but if the mortgage forecloses the tax lien still has to be paid. State laws vary and there are exceptions.