tax lien auction

JY:

Its a huge topic...

My past experience on this topic, again, every state maybe different, a tax lien auction can't get you a title, if you win the auction, they will issue a certificate entitle you first position on the property. so yes tax lien is first lien, but you still need to foreclose the bank loan for clear title.

The worst story I know was, the guy bought some ground then found they were contaminated..

1. If there is mortgage, 99% of time, bank will not let it happen, they always pay the taxes so they not jeopardize the mortgage.
2. If there is no loan, owner mostly would redeem, they rather sale the property before let you own it for just few thousands bucks.
3. As investor you can't afford to research on all the properties...

Other:

as mentioned above, the primary lien holder such as mortgage companies or owners won't let it happen so easily. however when tax lien or tax deed auction scheduled, very like neither lien holder or owner really cares about the property. the chances are that these properties are really junk.
to my experience, the most properties are vacant lands in nowhere. the remaining improved properties are really old, small,with significant damage. the renovation cost will leave no profit margin.
occasionally you may find a few acceptable properties. however these properties could be redeemed by the owner at the last minute or you have to bid up significantly to win the bid.
overall speaking the chance of getting tax deed for good properties is like winning a lotto.