When Owners Default on Tax Liens

[Mark Davis]

What happens if a property owner does not pay, when it comes to tax liens/certificates?

[Timothy W.]

Originally posted by Tyler H:

Really, mortgage is wiped out? Why don't then the mortgage company/lenders have someone monitor these tax liens so they can bid when it is time of the auction?

That's why mortgage companies usually escrow the tax payments and if they don't, can foreclose if you don't pay your property taxes. It gives them a year to repossess the property and resell it as an REO without losing it outright.