If you buy at auction, yes. If you buy an already foreclosed home that the bank now owns, no, the bank will be responsible for that.

Hi Rebeccalee,

It will depend. If you buy it at a "foreclosure auction" then yes, you would be responsible for any municpical liens(taxes, water, sewer...etc). However, if you buy it after the auction and the bank has bought the property back it becomes what is called an R.E.O(real estate owned) property and the bank then be responsible for keeping the taxes and everything else up to date or at least responsible for paying them at closing. I hope that helps. You can check out my blog here on Trulia called Distressed Properties 101, it may answer any more questions you have.

Happy Hunting,
Chris