Tax deed on a foreclosed property

[Michael O'Leary]

This is my first post so bear with me.

I am looking at the list of county government owned properties that are more than a year old the did not sell at the annual tax lien auction. The tax office told me there is no waiting period on properties on this list. If someone offers the opening bid, the bid is reviewed and if no one else has a bid in, the county immediately issues the deed.

I found a few properties that are listed as foreclosed on Zillow. So, what happens if I pay the tax and am handed the deed? I think if there were a mortgage on the property, it would be wiped, but what about when the property is already foreclosed and is owned by the bank? (Is this the definition of a REO?) I get the sense that I don't own the property free and clear. Am I at that point a thorn in the bank's side that they need to buy-out?

I'll leave it there. I hope that my scenario and question makes sense. Thank you.

[Dana Whicker]

First of all, if you haven't already, study and thoroughly understand the difference between a tax lien, tax certificate, and tax deed. If you don't you'll find out anyway sooner or later. You may be disappointed.

Don't trust any information you get on Zillow as fact. Zillow can be a helpful guide in some ways but the actual documents recorded by the Clerk of Courts are your scripture in RE. 

When a bank forecloses on a property and takes title, yes that's an REO. When that happens, the taxes are paid. There have been some cases of banks losing track of properties, a lot of cases a few years back. Not so much these days.

Hope that helps and good luck!