Some good info on this site. I just became interested in Tax Liens and Deeds a few days ago. I was at the Real Estate Wealth Expo in NY city. I happened to stumble in on Ted Thomas's class "Tax Liens"

I understand why counties/states want to sell their back taxes in forms of Lien/Deed certificates. However Tax Deed sales just boggle my mind. Ofcourse every state statues are different etc... but typically the starting bid starts at the back taxes plus fees and interest owed, correct?

Obviously the Tax lien takes precident over any other liens but what about the mortgage on the property? Once you win the Deed would the mortgage be your responsibility? and if not, if the title was clear of all other liens somehow, why wouldn't the bank just come a buy the deed, they sure have more money then most RE investors.

If I do a title search on a specifiche property and the balance is $200,000 but the Tax Deed sale starting bid is $2000. Would it be smart to bid on this property being that it has an outstanding mortgage?

And what about Title insurance. I read some where that Title insurance companies are reluctant to insure title on a Tax foreclosed property? And that you may have to file a Quiet Title Action?

Thanks

Jordan