Tax auction Vs Bank auction

  • Homeowners who default on their property tax payments
  • Foreclosed by a government entity
  • Benefits the government
  • Property tax auctions is conducted on courthouse steps or virtually
  • The government sole purpose is to recover what was owed in back taxes, so the starting bid is at the value of what is owed
  • Foreclosure for property taxes frequently wipes away non-tax-related junior liens.
  • Foreclosure process lasts about 24-32 months
  • Affects credit score

  • Homeowners who default on their mortgage payments
  • Foreclosed by a bank
  • Benefits the lenders
  • Bank auctions are scheduled through auctioneer companies
  • Like tax auctions, lenders’ sole purpose is to recover the mortgage debt, but they sometimes settle at a price lower than the mortgage debt, which is known as short sale.
  • Foreclosure on bank auctions does not wipe away other liens attached to the owner. Quit claim deed does not guarantee title
  • Foreclosure process lasts about 14-18 months
  • Affects credit score

Are you or someone you know in this predicament and need help? Feel free to reach us at [email protected] or 713 429 0272.

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