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AL: Tax lien vs HOA lien

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LHinvest

Junior Member
What is the name of your state? ALABAMA

I have recently started investing in Tax certificates and Tax deeds and I am performing a significant amount of research before buying. One of the questions I have not been able to "clearly" get answered is concerning the tax lien vs HOA liens.

In particular, I am interested in a piece of property that resides in my neighborhood. The property owes for significant back HOA fees. Before I go to the HOA and "negotiate", I would like to know if I do decide to buy this property through the tax sale/deed process via the state, once the deed is issued and I file in probate court, does that "wipe" the old fees away or am I now responsible??? If I am not responsible, negotiation with HOA will be a breeze.. :) If I am responsible, I will negotiate before buying.

Thanks to anyone who can help with my question..
 


LHinvest

Junior Member
Actually I have more info.. I looked up my CC&R and found this paragraph:

Section 8. The lien of the assessment provided for herein shall be subordinate to the lien of any first, mortgage. Sale or transfer of any lot shall not affect the assessment lien. However, the sale or transfer of any lot pursuant to mortgage foreclosures or any proceeding in lieu thereof, shall extinguish the lien of such assessment as to payments which become due prior to such sale or transfer. No sale or transfer shall relieve such lot from liability for any assessment thereafter becoming due or from the lien thereof.


Since all liens are subordinate to the tax lien, I would assume that this would be the case as in the state forclosing and issuing me a tax deed.

Thanks.
 

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