How To Buy Tax Liens – Why The Mortgage Company Won’t Redeem The Tax Lien They Own
Learn How To Buy Tax Liens – http://www.taxsalelists.com
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Hi, its John Lane from TaxSaleLists.com…if you do know about taxsalelists.com we are the website that has provided tax sale lists, over 10,000 a year, for the past eleven year and also provide the only tax sale training done by somebody who has been a major buyer of tax liens (over 77,000 tax sale properties acquired over the past 20 years).
Today I want to answer another question we get from a lot of people. Why don’t mortgage companies redeem the tax liens on the properties they have mortgages on?
People think that the Mortgage companies should always redeem tax liens on properties they have mortgages on and it probably is true that they should…but they don’t.
The question is why don’t they?
The simple answer is they don’t get notice of the tax lien.
Why don’t they get notice? Because they do not show up in the title search because they did not record their mortgage assignment.
Why didn’t they record it?…to save money.
A number of years ago the mortgage companies started trading mortgages like stocks. They would buy a pool of 1,000 mortgages thinking that they could trade them at a profit. The cost to record the mortgage assignments could run as much as $100 or more per mortgage…meaning they had to pay $100,000 or more to record their mortgages.
Since they planned on trading the mortgages they chose not to record them. Because of that they were not in the chain of title and never received notice of the tax lien.
To sum it all up.
The mortgage company can only redeem the tax lien if they know it exists.
If they haven’t recorded their mortgage assignment they will not get notice of the tax lien and will not know it exists.
If you would like to learn more about tax sales and how to buy tax liens, we regularly hold a free webinar about tax sales that will answer all your questions about tax sales.
To register for it, just go to http://www.taxsalelists.com or click the link below in the description
How to buy tax liens – http://youtu.be/kxrFueBQsU8
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