Tax deed sale in Ohio

[leslieh]

Hello,

I am new here and to the world of tax sales. I am currently looking at a property that is going up for auction due to unpaid back property taxes.
The problem I have is that there is a lien on this property from the bank.
I am wondering what happens to these liens?
When I purchase the property do I also assume the lien?
I have tried asking the treasurer and the auditor but neither are able to answer my question.
I have also tried to find any codes on this, but the only thing I have found says that "the state shall have first lien", etc. but I don't know how to interpret this.
Thank you for any advice you can give me.

Leslie

[Randy (SELA)]

I don't know how it works in Ohio, but down here in LA at a tax sale you are only buying the tax lien on the property. The owner has a right of redemption for 3 years. After paying taxes for 3 years you can file for a Quiet Title to the property. If the taxes are redeemed you get what averages out to 17% a year I think. As for liens, you will probably have to pay those off should you happen to get title to the property

[Dan Auito]

Of all the things I've done Leslieh Tax lien investing is not one of them. Sorry I can't be of more help on this question.
I will say I'm glad you're here though!

Do this Leslieh, type in "Tax Liens" into our sites search feature in the upper navigation bar. That will pull up all relevant posts from the past that may relate to your question. Here is what came up when I typed in Tax Liens = http://www.magicbullets.com/forum/search.php?searchid=226240

[leslieh]

Wow, thanks Dan and Randy for the quick replies and advice. Did the search and came up with tons of posts. It will take me a bit to read through all of them :SM139:

Have a great evening.

Leslie

[jwg299]

Leslieh, I also live in Ohio and have begun checking into tax sales as well. As you know Ohio is a blended state, we have both tax deed and tax lien certificate sales. On tax deed sales (unpaid property taxes) when the bank has a lien on the property, you would inherit the balance due on the loan, which means the bank wants to be paid before they release the deed. This can happen 2 ways, that bank will give you a loan, or you get the money from another place.
Usually you will see the type of property your speaking of when they pay their mortgage and taxes seperatly. Its a GOOD thing you found out about the lien before you purchased the property and was surprised about it later.

A bit of helpful advice. Any tax deed property your looking to buy have your closing agent run a lien and title check for you. If you use that closing agent often and explain to him if you purchase the property you will close with them they may give you a delayed or reduced billing on the title search.