What Happens to a Mortgage and Other Liens When a Georgia Tax Sale…

Short answer

If you redeem your Georgia property after a tax sale, any mortgage or other lien that was on the property at the time of the sale comes back with it—redemption does not wipe out those debts. The right to redeem lasts at least 12 months from the sale and can be sold to someone else before it ends.

Why it matters

Understanding what happens to your mortgage and other liens after a Georgia tax sale is crucial because:

If you redeem, you get the property back, but you still owe any mortgage or liens that existed before the tax sale.
If you sell your right to redeem, the buyer steps into your shoes and will also take the property subject to those liens if they redeem.
Not knowing this can lead to unexpected debt or loss of property value.
The timing and cost of redemption are strict, and missing a deadline can mean losing your property for good.

For example, if your property was sold at a tax sale for unpaid taxes but had a mortgage, redeeming the property means the mortgage is still there. This can affect your financial planning and your options for selling or keeping the property.

Steps

If you are the former owner of a Georgia property sold at a tax sale and want to understand your options regarding mortgages and liens, follow these steps:

Confirm the type of sale: Check your paperwork to see if the sale was a standard tax sale or a judicial in rem tax foreclosure. Most are standard tax sales, but some counties use the judicial process. Identify all liens: Review your records and the title to see what mortgages or other liens were on the property at the time of the tax sale. These survive redemption. Understand who can redeem: The former owner, or anyone with a right, title, interest, or lien on the property, can redeem. You can also sell your right to redeem by quitclaim deed before it ends. Know the redemption period: For a standard tax sale, you can redeem at any time within 12 months of the sale, and after that until the right to redeem is foreclosed by notice (barment notice) served through the sheriff. The notice must give at least 45 days before the right ends. For a judicial in rem tax foreclosure, the right to redeem lasts 60 days from the sale and is exercised by paying the minimum bid into the superior court. Calculate the redemption price: The price is the amount paid at the tax sale, plus any taxes or special assessments paid by the purchaser after the sale, plus a premium of 20 percent for the first year or fraction, and 10 percent for each year or fraction after that. If you redeem more than 30 days after the notice, sheriff’s service and publication costs are added. Payment must be in full, in certified funds. Redeem or sell your right: If you redeem, the purchaser must sign a quitclaim deed back to you. If you sell your right to redeem, the buyer can redeem and take the property, but it will still be subject to any liens that existed at the time of the tax sale. Understand the effect: After redemption, you (or your buyer) get the property back, but any mortgage or lien that was on the property at the time of the tax sale is still attached. Liens existing at the sale survive redemption. Get legal help if needed: A law firm can read the tax deed and notice, compute the redemption price and deadline, and handle the paperwork if you decide to redeem or sell your right to redeem.

Example

Suppose your Georgia property was sold at a tax sale for unpaid property taxes. At the time of the sale, there was a $100,000 mortgage on the property. The tax deed purchaser paid $10,000 at the sale. You still have the right to redeem.

If you redeem within 12 months, you must pay:

$10,000 (amount paid at the tax sale)
Plus any taxes or special assessments paid by the purchaser after the sale
Plus a 20 percent premium on the total

So, if no extra taxes were paid, the redemption price is $12,000. After you pay, the purchaser signs a quitclaim deed back to you. The $100,000 mortgage is still on the property—you still owe it. If you sold your right to redeem to someone else, they would also take the property subject to that mortgage if they redeemed.

Key point: Redemption gets you the property back, but not free and clear. Any mortgage or lien from before the tax sale is still there.

Common pitfalls

Assuming redemption wipes out the mortgage: It does not. The mortgage and any other liens from before the tax sale survive redemption.
Missing the redemption deadline: After 12 months, the purchaser can foreclose the right to redeem with a notice. If you miss the deadline, you lose the property.
Not checking for a judicial in rem sale: The redemption period is only 60 days for these sales, and the process is different.
Confusing tax sale with mortgage foreclosure: These are separate processes with different rules and outcomes.
Overlooking the cost of redemption: The premium (20 percent or 10 percent) and any added costs can be significant.
Failing to document the sale of your right to redeem: If you sell your right, the paperwork must be correct and the sale completed before the deadline.

Summary

After a Georgia tax sale, the former owner keeps a right to redeem the property for at least 12 months, and sometimes longer.
Redemption returns the property to the former owner (or their buyer), but any mortgage or lien that existed at the time of the tax sale survives.
The redemption price includes the sale amount, any later taxes or assessments, plus a 20 percent premium for the first year and 10 percent for each year after.
The right to redeem can be sold by quitclaim deed before it ends.
Next steps: Review your tax sale paperwork and any liens, and consult a real estate attorney to calculate your redemption price and deadline, or to document a sale of your right to redeem.

This page is general information and does not create an attorney-client relationship.

Important information

Attorney advertising. Responsible attorney: Christian Cruz, Esq., Georgia Bar Number 238836. Office: CRUZ LAW FIRM, 160 W Camino Real, 589, Boca Raton, FL, 33432.

This page is general information about Georgia law, not legal advice. Reading it does not create an attorney-client relationship, and no such relationship is formed until we have a signed written agreement.

Fee arrangements depend on the posture of the matter and are set out in a written agreement before any work begins. We are glad to explain how fees would work in your situation when we speak.

FAQ

Does redeeming my Georgia tax sale property remove my mortgage?

No. If you redeem your property after a tax sale, any mortgage or lien that existed at the time of the sale remains attached to the property. Redemption does not remove these debts.

How long do I have to redeem my property after a Georgia tax sale?

You have at least 12 months from the date of the tax sale to redeem your property. After 12 months, the purchaser can foreclose the right to redeem by serving a notice through the sheriff, giving at least 45 days’ notice before the right ends.

Can I sell my right to redeem my property after a tax sale?

Yes. The former owner can sell their right to redeem to another person by quitclaim deed before the right ends. The buyer can then redeem the property, but it will still be subject to any liens that existed at the time of the tax sale.

What is included in the redemption price after a Georgia tax sale?

The redemption price is the amount paid at the tax sale, plus any taxes or special assessments paid by the purchaser after the sale, plus a premium of 20 percent for the first year or fraction, and 10 percent for each year or fraction after that. If redemption is made more than 30 days after notice, sheriff’s service and publication costs are added.

What happens if I do not redeem my property after a tax sale?

If you do not redeem within 12 months, the purchaser can foreclose the right to redeem by notice. If the right is foreclosed, the purchaser’s title becomes absolute, and you lose all rights to the property.