Junior and Senior Lien holders

[Jimmy H.]

It is my understanding that junior lien holders essentially get wiped out if the owner of a tax liens forecloses on a property.

Example: House worth 100k with a 1st mortgage of 75k, I buy the property tax lien for 5k, hold it for a year (legal holding period before you can foreclose in my state), and when I foreclose the 75k mortgage is wiped clean and I own the property free and clear?

I guess the borrower still owes 75k but it is not longer collteralized by the property?

Is this how it owrks, that all JUNIOR lien holders get completely wiped out and you own a property free and clear for 5k?

Lastly, what lien are senior to property tax liens? IRS and what else? Is it just any federal lien?

-It seems a bit odd to me that a 5k lien wipes out a 75k mortgage. It seems more reasonable that you would foreclose and be the first to collect on your money, then the mortgage holder could seek repayment from whatever equity is left.

How does this work?

[Loc R.]

A simple rule of thumb that I live by: the 2 most important people in your financial life are going to be your accountant and your attorney. They will always be worth their fees.