Why is the Tax Lien Foreclosing?

After a tax lien investor,  also known as a certificate purchaser, has owned a tax lien for more than three years, they can open a tax lien foreclosure in order to recoup their investment in the unpaid taxes.

If the tax lien foreclosure goes all the way through the court system, the property is foreclosed upon. At the end of the foreclosure process, the certificate purchaser will get a treasurer's deed and own the property.

What is unique about the tax lien foreclosure process is any other subordinate lien on the property will be eliminated. That means if there is a mortgage on the property or any lien such as a mechanic's lien or HOA lien, those will be eliminated. Because of this, most banks pay the taxes as part of an escrow account in the mortgage payment.

Unable to pay your taxes and wondering how long you have until it becomes a tax lien? Check out our article on Tax Liens for more information.

Wondering how long before a tax lien can go into foreclosure? Check out our Tax Lien Foreclosure Timeline to find out more!