Any subordinate liens will be extinguished from the property. This is general foreclosure 101. Basically, once a superior interest is foreclosed any subordinate interests will be wiped out. Well actually if there is any money from the foreclosure sale the proceeds of the sale will go to pay the suborindate liens.

So what we have to be concerned about really are parties which have interests that are superior to the tax lien. I have done some preliminary research in Nevada and know some investors there...my new course will cover the nuances to Nevada investing. Generally the liens you must watch out for are Federal Tax Liens and potentially homeowner association fees.

Federal tax liens are superior to state tax liens. Homeowner dues are commitments that 'run with the land' so to speak and bind future owners of the property. As a result they are not wiped out in a foreclosure action.

I would watch for those two areas. Start calling some attorneys in your area that focus on real estate law and just ask them what to watch out for in buying these properties..they will tell you right away what liens don't get extinquished.

Best of Luck and keep us posted on your progress!

Darius M. Barazandeh