Mary, I am a tax lien foreclosure attorney in NJ as well as an investor. I find it hard to believe that the mortgage holder is walking away from a $161,000 investment over a $4,000 lien. Are you sure the sale is not for the CERTIFICATE and not the property? if so, this means the certificate is merely changing hands from the municipality to a private investor and can (and will) still be paid. Also, in NJ state income tax liens have priority over property tax liens but
this would depend on your state’s laws. Why not bid on the certificate or the deed at the tax sale?
Tax Lien Foreclosure question? - Posted by Mary Lambert
Posted by Mary Lambert on March 08, 2000 at 08:06:52:
I was at the courthouse. A house worth approximately 180000 is being lost for 4000 in tax liens. The house has a mtg of at least 161000. The guy is an eye dr ans has state income tax liens filed against his company. I was thinking of offering the owner a couple of thousand and the bank 40-50 cents on the dollar. Question is is the the state tax liens necessary to resove before I buy the house? How could I sructure this so that all benefit?
Re: Tax Lien Foreclosure question? - Posted by John Behle
Posted by John Behle on March 08, 2000 at 13:17:27:
Tax lien laws and procedures vary state to state. You would just need to check into the status of these liens and whether you are going to need to pay them now or can deal with them later.
Property tax liens are an automatic senior lien against a property and don’t go away. Therefore, if you would need to finance the property for the purchase or sometime soon, you would need to pay the liens off. You might also find a hard time getting title insurance at this stage without the liens being paid in full. You’ll need to talk this over with an attorney or local title company.