Mortgage liabilities

[pjwlk]

Rob, great forum! Thanks for all your hard work!  How about a PayPal donate button so we can help you out?
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I'm new to Ontario tax sales but I've already gleaned a lot on info from this site.  I'm a little conused about my liabilities when it comes to mortgages that are registered against a property that I have won in a tax sale bid. If the mortgagor has been notified and has not come forward before I register the property, am I still liable for the balance of the mortgage?  Can the deed transfer be delayed for any reason related to the mortgage being registered against the property?  Can anyone clarify this for me?

Thanks in advance.

[Rob]

No paypal button needed, just visit often and tell one person.

A bank or private mortgage would be removed from the home or property.   You might be wondering how the bank gets the money they are owed.  The answer is they deal with it all before a property would go up for auction.  Stakeholders( owners, lien holders, etc) would receive three notices and at that point the bank has a chance to act.

[c_bannard]

Hi Rob,

I was wondering if you could tell me if this is also the case within the USA. I've just received this message from a title search company and was wondering if you could tell me if this is correct?

It seems that from what they're saying, mortgages DO survive the tax deed process.

Please find their response below.

I cannot say that because you are now referring to tax deed properties specifically. A tax deed purchase does not satisfy any open mortgages etc. If the current owner does not pay off the taxes within the allotted timeframe, the ownership gets transferred to the tax deed purchaser. You will inherit any open mortgages etc attached to the property. Subsequently, you should have a preliminary search to determine any open items to reduce your liability.

If you could clarify for me, it would be greatly appreciated.

Regards,


Christian

A bank or private mortgage would be removed from the home or property.   You might be wondering how the bank gets the money they are owed.  The answer is they deal with it all before a property would go up for auction.  Stakeholders( owners, lien holders, etc) would receive three notices and at that point the bank has a chance to act.