When a property is sold at a tax deed sale, most liens and judgments, including mortgages, are typically extinguished, however there are certain liens that survive a tax deed sale. These may include federal tax liens (which have a 120-day redemption period), certain county or municipal liens, and any liens arising after the property was put up for a tax sale. Also, liens for governmental services like code enforcement can sometimes survive.

Conversely In a mortgage foreclosure sale, the property is sold to satisfy the debt owed to the lender. Junior liens (those recorded after the foreclosing mortgage) are typically extinguished if they are properly notified and included in the foreclosure action although some senior liens (those recorded before the foreclosing mortgage) remain attached to the property. This means the buyer is still responsible for any superior liens or encumbrances after the sale. Buying a PropertyOnion.com title report is crucial before bidding.