Legal Question in Real Estate Law in District of Columbia
Tax Lien Certificate and Mortgage
I purchased a tax lien certificate. It is my understanding that the owner's three mortagages represent junior liens if I mount a successful foreclosure action. Am I still responsible for the mortgages after foreclosure in DC? Is there anyway to alert mortgage companies pre-foreclosure that I am more than willing to assume the mortgages or pay them off before they pay off the mortgagee's tax debt?
1 Answer from Attorneys
Re: Tax Lien Certificate and Mortgage
Merely because you've purchased a tax lien certificate, this in no way entitles you to foreclose on the property or to attempt to take over the existing mortgages on the particular property which is the subject of the tax lien.
If the owner of the property pays the delinquent taxes plus interest and penalties, then all you're entitled to receive is the agreed rate of interest specified on the certificate for the applicable time period.
Only if the owner of the property fails to pay the above-referenced amounts by the applicable deadline would you then as the holder of the tax lien certificate have the right to acquire the property for the amount of the delinquent taxes plus penalties and interest which are owed to the District of Columbia, the issuer of your tax lien certificate.
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