Delinquent Taxes & Non Performing Notes

[Erica Baruti]

Can someone shed some light on delinquent taxes & non performing notes. I don't think it makes a difference if it's a senior or junior lien, but if it does, please clarify. So my question is if taxes are owed on the property & you purchase the note, how does that impact the note? 

[Dion DePaoli]

Property tax liens are 'Super Liens' meaning they have priority over other non-super liens.  This includes mortgages and deeds of trust.  That superiority  allows the tax lien to foreclose ALL inferior liens and interests.  

Whether a tax lien is an immediate issue, meaning the lien can cause the foreclosure would need to be crossed with the state and county of the subject property.  

There is no difference if you are in first position or second position or later, they can all loose to taxes.  Sometimes one lien position will advance the payment to protect its interests.  It does not matter who pays the bill and the bill being paid is beneficial for all parties with liens and interests in the property as it would relate to loosing the property due to tax foreclosure.