Urgent Question re: Federal Tax Lien on property - Posted by Alex
Posted by Alex on September 29, 2003 at 17:03:30:
Great forum. Hope someone can shed some light on a newbies wrinkle on a potentially great deal.
Found a preforeclosure that was going to go up for auction Oct. 7 with a listed $39K for opening bid. The house is in great shape and based on comps in the area, it is worth between $85K and $95K.
I got the owners to sign a release that allowed me to talk to the lender about a possible mortgage discount. Normally no lender would even consider something like this so close to the auction especially given the large equity. But thanks to this forum, I told the lender that the owners are ready to file for bankruptcy protection which would stop the auction sale in its track. Believe it or not, the lender settled for a payoff of $25K.
Now I was ready to make an offer to the owners to sell me the house for $35K, which would put 10K in their pocket and walk away mortgage free as we discussed before I got them the discount on the mortgage. And that’s when I found out about a $15k Federal Tax Lien against the title.
I have never encountered a situation where there was a lien against the title before. How does this affect the deal?
Can someone please shed some light on this before I get in too deep?
Thanks in advance.