Thursday 27 February 2014

If my home goes into foreclosure and their is a tax lien on it, if the home sells, is the purchaser now responsible for the tax lien?

Question

If my home goes into foreclosure and their is a tax lien on it, if the home sells, is the purchaser now responsible for the tax lien?



Answer

Assuming proper procedures are followed, and assuming the tax lien is junior to the mortgage being foreclosed (I.e., recorded after), the only way it is paid from the foreclosure is if the property sells for more than the mortgage balance. Then the surplus proceeds go to the next lien in line.



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