Subject To with a Tax Lien? - Posted by Jerry
Posted by Jerry on January 27, 2002 at 18:44:20:
I hope someone can help me out with deal. A fellow owns a house worth about $95K. His mortgage balance is $60K, and he has an IRS Tax lien of $14K. He’d deed me the property for a couple thousand dollars, but I don’t know how to handle the tax lien.
I want to buy it subject to the mortgage and lien, which total about $74K, and sell it lease-option or CFD. Problem is, I don’t know how to handle the tax lien. If I just let it stay on the property until some buyer refis and cashes me out, the lien will get paid-off. But, until then it keeps increasing every year, with extra penalties, I imagine. Is there a way to “challenge” the lien, or otherwise get it removed from the property? Maybe a discounted pay-off?
Any suggestions would be appreciated! There’s a lot of equity for a small price…if I can get it to work out.