Tax sale proceeds: Who gets what?

[Mike Kim]

Hi guys,

Nice to meet you, all. I am new to this and I saw some of your comments on the Tax lien sale. Perhaps you can give me some advice:

If the tax lien is $10K, and there is a mechanic's lien for $100K, and the mortgage is for $100K, and the tax deed is sold for $300K on a $400K house at a tax deed sale, who gets paid for what amount?

a) County Treasurer takes $10K and pays the mechanic $100K, the mortgage holder $100K, and the remaining $90K to the home owner?

b) County Treasurer takes the entire $300K bid, cancels both the lien and mortgage, and the owner gets nothing?

c) County Treasurer takes $10K, cancels both the lien and mortgage, and the home owner gets the remaining $290K?

Your insight would be greatly appreciated. Thank you!

Mike