cancel
Showing results for 
Search instead for 
Did you mean: 

Liens Question (SMILE)

tag
Anonymous
Not applicable

Re: Liens Question (SMILE)

A property tax lien is tied to the title of the property - many counties/states auction the tax lien but not the house (then you pay the person holding the lien or they can force a sale (but getting clear title is another story).  Many people buy property tax liens as an investment (guaranteed to pay off at some point- pretty safe.).  An Income tax (state or fed) can trump any mortgage in a sale and the IRS will force a sale of your home especially if there is equity in it and even if there isn't.
 
If you are selling a house with a property tax lien against it - it has to be paid in order to pass clear title.  But an unpaid income tax lien can take 1st position over a mortgage (existing or new) and lenders loathe that.
Message 11 of 12
Minnie
Contributor

Re: Liens Question (SMILE)

In addition, in many states (mine included), tax liens can attached to after-acquired property...that is why mortgage lenders have to have your tax liens released before you purchase...they will attach to the property you are acquiring.
Message 12 of 12
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.