Federal Tax Lien

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I ;ive in Ohio. I need to find out what the differance is between a Senior Federal Tax Lien and a Junior Federal Tax Lien. Where do I go to find this out?
Tanks

Comments(2)

  • RonaldStarr13th October, 2004

    Sherron--(OH)-------------

    Nothing. They are the same.

    The only difference is that when you talk about a junior IRS lien there is some other obligation against the property which is senior to the IRS lien. When you talk about a senior IRS lien, there is some other obligation against the property which is junior to the IRS lien.

    Good Investing************Ron Starr********

  • JohnMichael13th October, 2004

    FEDERAL TAX LIEN is a lien attaching to a property for nonpayment of a Federal tax. A Federal tax lien differs from other liens in that it's not automatically eliminated by a senior lien holder foreclosing on a mortgage or trust deed recorded before the tax lien.

    In some cases, a federal tax lien can be made secondary to another lien. That process is called subordination.

    Lien Subordination enables a taxpayer to secure financing for the purpose of making a payment towards their federal tax liability. A Federal Tax Lien gives the government a secured interest in any property that is subject to the Lien. Because of this secured interest, potential lenders are not willing to loan money to a taxpayer with a Tax Lien unless they can obtain a security interest superior to that of the IRS Lien. By subordinating the Lien, the IRS allows a lender to take a superior interest ahead of any IRS claims on value of the property. In return, the IRS will require that it receive ALL proceeds in excess of sales costs and amounts due to Lien holders who are senior to the Service (your mortgage holder, etc.), up to the amount of taxes owed. While there is no specific IRS Form for Subordination or discharge of a Federal Tax Lien, the process is very specific. As long as the IRS is receiving the full proceeds (other than closing costs) from the sale or refinance of a property, the Service will generally grant Subordination.
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