Federal Tax Liens + Sale

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Federal tax liens exceed value of equity in home
180,000 fmv
120,000 mortgage
85,000 fed tax liens
Court ordered house to be sold in divorce property settlement. Can this be sold?

Comments(8)

  • JohnMichael21st May, 2005

    Sure it can for 205k.

    The tax lien is negotiable also
    [addsig]

  • jezabel20th May, 2005

    There was no listing of a second on the books or in any of the bankruptcy proceeding paperwork. The bank that sold it was the only one who held the mortgage. Does this new bank have a right to come in a take it back legally?

  • JohnMichael21st May, 2005

    What state and county was the tax deed for?
    [addsig]

  • edmeyer21st May, 2005

    jezebel,

    Your position seems to be sound. It costs very little if anything to have an attorney tell you what your position is. On the face, it appears that the mortgage got wiped out by the sale.

    When the bank says that they want to protect their mortgage you might tell them that there is no mortgage since it was lost at the tax sale and that any issue they have is with the bank who sold them the note or with the party responsible for notifying them of the tax sale. Do not cave in to them. See what they do first. If their position is as weak as it seems, they may do nothing. This seems like black letter law to me and an hour with a real estate attorney should provide you with clarification --possibly at no cost.

    Keep us informed on this one.

    Regards,
    Ed

  • kiyuki19th May, 2005

    The place was listed for 38k but now around a year later it is down to 28k with a local agent. It is still in REO status and taxes still unpaid. Thanks for the heads up on state and Federal taxes. It had a 30 year mortgage originating in 2001 for 48k before it defaulted so hopefully those owners did not get in THAT much trouble. Any advice on approaching the broker agent with out totally exposing what I know? Also tips on discreetly checking a title in a small town would be great. Again, thanks for the input.

  • kiyuki19th May, 2005

    CJ I check out Citi REO page weekly and it stays pretty updated. It has changed brokers and the price dropped down 10k, so maybe it was a bad broker, but the taxes are still unpaid a year later. I am hoping that since it is offered for sale with an agent, that their is no encumbrances against the place. I called Citi and they said to contact the broker, that was last year so I am hoping it all works out.

  • kiyuki22nd May, 2005

    It was purchased in 1998 ( if memory serves) so hopefully it is not a homestead situation. I do not know if we have those in MO or not. I know GA does. Thanks for the heads up. Maybe just being a certain age will qualify a person for homestead and not factor in length of time on the property. I do no MO gives a long time for disabled children of the property owners to turn 18 and make a claim, so I know title issues are standard here. Any other input is greatly appreciated.

    Also, it is connecting to a neighboring farm. There is no paved roads so maybe the issue is right of way to access the property?

    Thanks, Kiyuki[ Edited by kiyuki on Date 05/22/2005 ]

  • RedAnjin23rd May, 2005

    Bump

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