Re: Fed Tax Lien preceding Mortgage - GA

Posted by Darryl-CA on November 26, 2003 at 11:43:27:

In Reply to: Fed Tax Lien preceding Mortgage - GA posted by David on November 24, 2003 at 23:37:29:

: Hello David. I understand your situation. Since you had a tax lien prior to your mortgage, the tax lien is now in 2nd position on title.It attached to your property the moment you took ownership.During the foreclosure sale, if your lender is the successful bidder,the tax lien will be extinguished from that particular property 120 days after the sale takes place. However it will still attach to any other real or personal property you may have. If the property is sold to a third party, any surplus funds, up to $100K will be paid to the I.R.S. From my experience the first thing to do is to let the lender know that you are planning to possibly negotiate an OFFER IN COMPROMISE with the I.R.S.(in order to reduce the outstanding tax lien).The reason being is because based on the fact that your property is encumbered with approximately $259k in debt, it is highly unlikey that a 3rd party will even bid on your property. If the lender takes the property back, they take it back subject to the I.R.S.' 120-day right of redemption. In other words the I.R.S. stays a lien on title 120-days after the foreclosure sale by law. The I.R.S. would then have the power to foreclose on its lien(in order to get paid off) and your lender could possibly lose any interest they may have in the property.THE BOTTOM LINE IS------Your lender can not get clear and marketable title to the property as long as the I.R.S. is still attached. Nor can they or any other party get title insurance.It's sort of like owning a car with a salvaged title.By the way, I do know how to postpone your sale next week and if by chance it does go to sale, I know how to reverse it. For more info e-mail me.

DARRYL-CA

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: : Hello David. I understand your situation. Since you had a tax lien prior to your mortgage, the tax lien is now in 2nd position on title.It attached to your property the moment you took ownership.During the foreclosure sale, if your lender is the successful bidder,the tax lien will be extinguished from that particular property 120 days after the sale takes place. However it will still attach to any other real or personal property you may have. If the property is sold to a third party, any surplus funds, up to $100K will be paid to the I.R.S. From my experience the first thing to do is to let the lender know that you are planning to possibly negotiate an OFFER IN COMPROMISE with the I.R.S.(in order to reduce the outstanding tax lien).The reason being is because based on the fact that your property is encumbered with approximately $259k in debt, it is highly unlikey that a 3rd party will even bid on your property. If the lender takes the property back, they take it back subject to the I.R.S.' 120-day right of redemption. In other words the I.R.S. stays a lien on title 120-days after the foreclosure sale by law. The I.R.S. would then have the power to foreclose on its lien(in order to get paid off) and your lender could possibly lose any interest they may have in the property.THE BOTTOM LINE IS------Your lender can not get clear and marketable title to the property as long as the I.R.S. is still attached. Nor can they or any other party get title insurance.It's sort of like owning a car with a salvaged title.By the way, I do know how to postpone your sale next week and if by chance it does go to sale, I know how to reverse it. For more info e-mail me.

: DARRYL-CA

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Re: Fed Tax Lien preceding Mortgage - GA

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