Tax Lien Foreclosure

[Jeff Flaherty]

I understand 95-99% of the time tax liens don't end up in foreclosure but in the event it did would the certificate purchaser be responsible for the mortgage on the property? I'm assuming so since it seems silly that you could buy a cheap tax lien, end up foreclosing and then have the bank lose the property. It's probably an irrelevant inquiry but I'm more curious than anything else. Thanks!

[Glenn Gerisch]

If you start a foreclose under a tax lien in NJ, and there is a mortgage on the property, the bank can pay the lien off and stop the foreclosure. If they fail to pay off the lien and you complete the foreclosure, the  bank gets wiped, you owe them nothing.