Posted by Ben (NJ) on March 01, 2002 at 17:06:17:
Your state law may differ but in NJ:
yes, Federal tax liens ARE junior however some pesky rules apply to make them problematic. As other liens will be wiped out simply by the Final Judgment, Fed liens can only be wiped out by a sheriff’s sale. The US also has a redemption period (180 days or 120 i forget). The good news is I have been able to circumvent every single federal lien I have come across in one way or another. Either by taking title subject to the lien and allowing it to expire (they are good for ten years and if not renewed
they expire). Sometimes if the federal lien applies to
a “Jim Robinson”, often your title company can determine it is not YOUR Jim Robinson. I have been VERY lucky thus far in escaping the grasp of the federal lien. (My nickname is “skater boy”, remember)The foreclosure process is far too detailed to get into here but it basically consists of joining and serving every defendant with a junior interest in the property and telling them they either have to pay off your lien or their lien will be wiped out. The Final Judgment forecloses out the rights of anyone else to redeem your lien, grants you possession and is in effect, the new deed and is recorded as such. Have you read “The 16% Solution” by Moskowitz?