HELP with Title Issue. Great Deal Though - Posted by Ron

Posted by Matthew G on April 03, 2006 at 15:53:19:

tax liens can be reduced / short pay. are you going to flip this or hold?

HELP with Title Issue. Great Deal Though - Posted by Ron

Posted by Ron on April 03, 2006 at 12:20:03:

HI everyone,

Hopefully you can help me with this.
I’ve got a property that’s a pretty house in a nice area which is about halfway paid off on the original mortgage.

The property was owner financed to a buyer a year ago who stopped making payments to the original owners.
Thus the owners took the houseback on foreclosure.

Unfortunately, the Buyer while he owned the property got an IRS tax lien slapped on his name.

Now the original owners are behind on payments to the original lender and have this tax lien from their BUYER on the property.

Is there a way to get this removed?
Can I still take this Subject to and wait for the lien to be released at a future date?
Other than this lien staying on this property, what are the risks here?

Thanks so much everyone!


Long and short - Posted by Marc Donovan

Posted by Marc Donovan on April 03, 2006 at 19:43:17:

Go ask your title company to do a search. Expect to pay a few dollars, but their attorney will review all of the facts and give you an opinion. When you close, use these folks for your closing and you will not have to pay again for the search. This is really short money compared to the risks if you get it wrong, so this is where it pays to get a professional opinion. In my humble opinion, you are crazy to buy a property without getting title insurance, and a cursory title search is part of their service to you. Don’t go with the plain O&E report though - it usually does not come with a legal opinion.

“Took the house back on foreclosure” - Posted by JT-IN

Posted by JT-IN on April 03, 2006 at 17:50:06:


This may boil down to the definition of “Took Back”, and how that occurred. It will also depend on which state the property is located…

So how did they take back the property…? Was it truely a foreclosure action, where there was a public sale held, or did the Buyer Deed the property back to the former owner, (now current owner)…?

It would also help to know the current FMV of the property, the amount of the Mortgage, and amount of the Tax Lien, and when the Lien was applied…? and for what period, (year) the taxes are owed, and are they income (1040) taxes, or for payroll taxes, from 941 filings… or lack thereof…? All this info is, or can be relevant to the answer.

I’ll check back later for more info…


JT-IN can you please help here? - Posted by Kristine-CA

Posted by Kristine-CA on April 03, 2006 at 16:57:50:

Ron: what are the dates of the foreclosure and the IRS lien? What state
are you in?

JT: If the lienholders properly foreclosed, doesn’t the IRS have a set
amount of time after the sale to take the property?