Can you get Tax liens discounted? - Posted by Marty

Posted by Potash on November 24, 2000 at 19:56:22:

the question clearly concerned income tax liens not property tax liens.

Can you get Tax liens discounted? - Posted by Marty

Posted by Marty on November 24, 2000 at 17:32:11:

Hello All,
Found a house in preforeclosure. Comps show 100-105k. VA loan balance of 72k. Owe about 6500 in back payments plus fees on mortgage. Owe several State tax liens totalling almost 5k and a Federal tax lien of 5200. House needs aproximately 2k in repairs. Would like to pick up the house, fix up and L/O to tenant buyer. Not much room here unless I can get a short sale(not sure if you can do that with VA loan)or some discounting. Any hope?
Owner Occupied area–rents can pull 900-1000 per month. Could L/O for 110k.
Thanks for input. God Bless all.
Marty

Re: Can you get Tax liens discounted? - Posted by dewCO

Posted by dewCO on November 25, 2000 at 20:49:00:

Look for Marty Weisberg’s answer to a post little ways below yours and post this Q to him, then ask him to answer in on the board, maybe a new subject topic would be helpful. He might have had some experience with this.

Re: Can you get Tax liens discounted? - Posted by Ben (NJ)

Posted by Ben (NJ) on November 24, 2000 at 19:30:29:

Many states sell municipal tax liens to the private sector and sometimes these are sold at discount. This is rare though since the priority is so high and the ltv so low. Most of the time tax liens will go for a premium as opposed to a discount. As far as I know state and federal liens are not sold to the private sector but I have heard of people negotiating with the IRS.

Re: Can you get Tax liens discounted? - Posted by Tony

Posted by Tony on November 24, 2000 at 19:05:04:

Tax liens are taxes owed to the local government. There’s no way to get a discount. If the tax man isn’t paid within a finite amount (varies county to county) they’ll just take the propery. The government is in first position. Even before the first mortgage, so mortgage companies will normally pay the tax lien and foreclose on the house themselves.

Tony