Posted by Rich-CA on July 14, 2007 at 13:01:01:
What order are the liens recorded in? Are you the second?
Are the taxes property or income taxes? In your area, does a property tax lien have first position or does it get in line.
Here’s the thing, if you foreclose you’re only on the hook for the liens senior to yours. I doubt the business loan is unless you sat on your lien for a while before recording it. In which case, junior liens are wiped out on foreclosure. The reason I ask if its property tax and if in your area is an automatic first position lien is that if it is, you would only be responsible for the tax plus the first. if tax is not in first position, then you would not have to pay it either.
Ask a Title company to help on this and make sure you get Title insurance in case there are any mistakes.