Every lien is a claim on the property. A sale clears some claims and leaves others. The rules are different for the two kinds of sale, and the difference is the most expensive mistake a new bidder can make.
After a tax deed
Taxes come first in Florida. A tax deed sale usually wipes out:
- Mortgages, first and second
- Homeowners association liens
- Judgment liens against the former owner
- Most private claims
What can survive a tax deed:
- Some federal liens, like an IRS lien, which gives the IRS a 120 day window to redeem
- Municipal and county liens for things like code enforcement or utilities, in some cases
- Easements and restrictions that run with the land
- Special assessments and taxes for the current year
The notices the clerk mailed matter. A lienholder who was never notified may have a claim the sale did not clear. That is the whole reason for quiet title.
After a foreclosure
A foreclosure sale only clears liens that came after the one being foreclosed, and the one being foreclosed itself. Everything senior stays.
- A bank forecloses a first mortgage: the second mortgage and the association lien are wiped. Property taxes stay.
- A second mortgage holder forecloses: the first mortgage stays on the house. The buyer takes it subject to that loan.
- A homeowners association forecloses: the first mortgage and any second mortgage stay. This is the one that catches people. The opening bid looks tiny because the association is only owed a few thousand dollars, and the house has a $250,000 loan on it that the buyer does not get to skip.
| Tax deed | Bank forecloses a first mortgage | Association forecloses | |
|---|---|---|---|
| First mortgage | |||
| Second mortgage | |||
| Association lien | |||
| This year's property taxes |
Survives the saleWiped out by the sale
See the numbers
| First mortgage | Tax deed: Wiped out by the sale; Bank forecloses a first mortgage: Wiped out by the sale; Association forecloses: Survives the sale |
| Second mortgage | Tax deed: Wiped out by the sale; Bank forecloses a first mortgage: Wiped out by the sale; Association forecloses: Survives the sale |
| Association lien | Tax deed: Wiped out by the sale; Bank forecloses a first mortgage: Wiped out by the sale; Association forecloses: Wiped out by the sale |
| This year's property taxes | Tax deed: Survives the sale; Bank forecloses a first mortgage: Survives the sale; Association forecloses: Survives the sale |
Source: The rules in this post; Florida Statutes chapters 197 and 45
How to tell what is on it
Search the county's official records for the property and the owner. Look for every mortgage and every lien, and for a satisfaction of each one. On a foreclosure, read the final judgment: it names the defendants, and a bank named as a defendant is a bank whose lien is being wiped. A bank that is not named is a bank whose lien survives.
Title companies do this search for a fee. On a foreclosure it is worth paying before you bid. GovDeed's private buy desk will not set a bid on a foreclosure until a title check is logged, and that rule is a good one for anyone.
The parcel page shows the case number and a link to the county record. Start there.