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In this week's tax sale tip, the question addressed is whether a tax deed at auction eliminates an existing mortgage. The explanation reveals that during a tax deed auction, the tax lien takes precedence over the mortgage, effectively pushing it into a secondary position. This is referred to as a "super lien." Consequently, even if a mortgage is initially in the first position, the tax deed supersedes it. Additionally, mortgage holders often purchase the tax lien or certificate before the auction, which can lead to changes in the property list just before the auction. This explains why some properties may be removed from the auction list prior to bidding.
