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Updated over 7 years ago on . Most recent reply
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What liens will stay with a property after a tax deed sale?
Which below liens would still stay with property after a tax deed sale?
IRS lien, HOA lien, Special Assessment lien, Water and sewage lien, All kinds of Judgement Trust deed (is it a lien)?If a tax deed property has IRS liens of total 50K, Under what scenarios that those IRS liens would wipe out after a tax deed sale?
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The answer is somewhat state specific as the rules are driven by state law. Generally, if the lien is from a governmental unit, it will not be released by tax sale. Thus liens from IRS, water and sewer, demolition, mowing, etc,. will survive the tax sale.
HOA liens may or may not depending on the state. You need to research the state where you intend to invest and determine the local rules.
BTW... some of the liens that survive may be negotiated. That is not true in all locations even for the same type of lien. Again you need to understand the rules for the jurisdiction where you want to invest.