Foreclosure in Little Rock>Question Details

Dixie, Home Buyer in Little Rock, AR

if you buy a home at a tax auction is it true all liens are cancelled?

Asked by Dixie, Little Rock, AR Fri Jul 16, 2010

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Steven Blackwood’s answer
That would be a legal question and it would be best ansered by an attorney. I would strongly encourage you to explore the risks of purchasing real property at auction. All states have different laws and Federal Taxes are different than State Taxes. Proceed with caution. I do not believe that to be the case. Good luck to you.
0 votes Thank Flag Link Fri Jul 16, 2010
Dixie...NO, ABSOLUTELY NO. Liens are as they say "Noticed up" by the attorney for the mortgagee and depending on the attorney, you may or may not have someone that covered all the bases possible. So you "could" purchase a property along "with" a lien and have to pay it as well. Most likely and in most cases, yes...all the liens are found and sent a notice and in those cases they will be erased in virtually all cases, HOWEVER, if anyone buys a auction property off the Courthouse Steps, you MUST obtain a "Title Committment" from a title company which will show all the liens of record. Then you can make sure all "those" liens have been noticed up before actually making your bid. It's a long and detailed process of work before you get to the point of actually "bidding". If you need any additional help, just let me know. David
0 votes Thank Flag Link Fri Jul 16, 2010
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