Are federal tax liens satisfied at a sheriff sale?
I want to buy a property at sheriff sale, but it has a $89,000 federal tax lien on it. Is this lien expunged at the sale? Or would I be responsible to pay it?
Another way of asking…is the lien attatched to the home owner or the property?
Prompt answers would be appreciated…the sale is in two days!
Thanks!
It is attached to the property and will have to be satisfied before you can get financing or title insurance on this home. So, yes, you will be responsible to pay it.
That is the purpose of tax liens, to make sure Uncle Sam gets his money.
4 Responses to “Are federal tax liens satisfied at a sheriff sale?”
No, it has to be paid…that is why it's on there.
Having a lien on a property means that if in default (ie. not being paid) they can foreclose at any time.
Having a lien will mean that unless you can pay cash, you cannot obtain financing on the home.
That is why purchasing homes at "tax sales" is reserved for people that really, really know what they are doing.
Comment made on June 17th, 2009 at 12:26 pmReferences :
The lien is attached to the home owner. They still owe the governement the $89,000 Otherwise you buying the home would clear their lien. That makes no sense.
Comment made on June 17th, 2009 at 1:12 pmReferences :
I'm assuming here that this is a courthouse foreclosure sale. The lien is attached to the property, and I think tax liens are one of the only things NOT purged by a foreclosure sale (mechanics liens and lower down mortgages are expunged, for example). So, I think in this one case you would be responsible for this debt even after a foreclosure sale.
Comment made on June 17th, 2009 at 1:49 pmReferences :
It is attached to the property and will have to be satisfied before you can get financing or title insurance on this home. So, yes, you will be responsible to pay it.
That is the purpose of tax liens, to make sure Uncle Sam gets his money.
Comment made on June 17th, 2009 at 2:06 pmReferences :
Oregon Realtor
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