Foreclosure University Forum


Foreclosure and Fed Tax Lien Questions

by foreclosureuniversity ⌂ @, Monday, January 04, 2010, 09:11 (3543 days ago) @ bstones
edited by foreclosureuniversity, Monday, January 04, 2010, 09:36

� Hello, I am currently looking into a foreclosure in Nebraska but need a
� little advice. I have done a ton of research as this is my first
� foreclosure but have a few issues with it. If the bank has 2 notes on on
� the house and one is the Senior lien but there is a Federal Tax Lien filed
� before the second note and the bank forecloses on both simultaneously is
� the Fed Tax Lien still junior> I have read that Fed Tax Liens have a 120
� day right of redemtion if they are not Senior but do not take priority.
� More detail: The first note was filed 02/01/2001 for $93,500.
� The first Notice of Federal Tax Lien was filed 03/07/2002 for $27,399.66
� and was assessed 10/15/2001.
� The second loan (through the same bank) was filed 04/10/2002 for $17,900.
� The second Fed Tax Lien was filed 02/19/2009 for $6492.12 but was assessed
� 05/20/2002.
� The bank has a Notice of Default for both notes which are identical
� including the total principal, the only difference between the two is the
� date of when the loan was made is. Both NOD's were filed on the same day
� at the same time.
� I just want to know if this is going to complicate things at the auction
� or will I be able to wait the 120 days and not have to worry about the Fed
� Tax Liens anymore> Also I am planning on using this property as a permanent
� residence so if the Fed Tax Liens do follow the property, would I be able
� to just wait out the statute of limitation and then request the lien
� removed>
� Any advice would greatly be appreciated!!!

Yes, the IRS has redemption rights. So they can redeem the property within 120 days of the sale. Typically they will only redeem if there is any equity in the property because that's the only way they get paid. Just don't go in and fix up the place until after you know the IRS is not going to do anything.

Good Luck

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