2006-06-22 12:38:48 · 11 answers · asked by airmencoach1 1 in Business & Finance ➔ Renting & Real Estate
You didn't say what type of tax lien. If it's a property tax lien the other answers should answer your question.
If it's an IRS tax lien then the answer is probably yes. My experience is the IRS isn't picky other than to make sure it's an arms lenght transaction (a real sale not to a relative, or significant other etc.) and the seller doesn't receive any proceeds. You would need to contact the IRS before closing and get a release or commitment and the conditions of the sale they would require.
Good luck
2006-06-22 17:12:06 · answer #1 · answered by GaryODS 3 · 0⤊ 0⤋
Yes you can in most states. That would then make you the owner of the lien. Why would you want that? I could almost guarantee that you will have trouble getting the lien financed along with the mortgage loan. They might even tell you to come back after you have taken care of the lien. Or you may be forced to pay higher interest rates. In many states they have tax sales on houses that have defaulted on taxes. You can actually buy a house far below market value. You might try that instead. If it were me, I would recommend you hold out and buy a house free & clear.
2006-06-22 12:52:23 · answer #2 · answered by Nancy L 4 · 0⤊ 0⤋
Here's another thing to make money - buy the tax liens. If you purchase the first year, then you have first rights on the second and third (if it goes that far). If you get there, you can petition the county to take title to the property, and you will own it for far less than what it's worth.
Note - only about 1% of properties actually go this far.
Second note - it's a great way to make money, because even if the owner redeems you, you can make as much as 14% or more on the money you've put out. And it's government guaranteed.
Good luck!
Sean
2006-06-22 16:27:22 · answer #3 · answered by trblmkr30 4 · 0⤊ 0⤋
If it's a cash transaction then you can do anything you want. I would still advise that you require the tax lien be paid off as a condition of sale. If there is a mortgage involved, the lender will want title insurance. The title insurance company will not insure unless this lien is fully paid off at closing. It will have to be satisfied for you to get the loan.
2006-06-22 16:12:15 · answer #4 · answered by spirus40 4 · 0⤊ 0⤋
yes.after a time limit the house goes up for sale.but the tricky part is in most states the prev owners can pay you the back taxes owed plus interest and any improvements you did. some have a 6 month and some 3 years to do this. So do alot of research. Mostly if there are back taxes the house payments are also not being made so the bank ends up with it anyway
2006-06-22 12:44:07 · answer #5 · answered by G L 4 · 0⤊ 0⤋
You can, but before you settle the lien will have to be paid. Your title company does a title search to be sure the property is free of liens, but if something comes up they can help you and the Seller clear it up. They have the forms and knowledge to help make the transaction successful.
2006-06-23 04:50:13 · answer #6 · answered by akc1106 4 · 0⤊ 0⤋
Yes, especially if you want to pay it off as a condition of purchase. The State or Federal Government just wants their money and many houses that are foreclosed on can be purchased for just the tax owed.
2006-06-22 12:44:09 · answer #7 · answered by fortuitousoppty 5 · 0⤊ 0⤋
Yes you can.
The lien will be paid out of the sellers proceeds at closing.
2006-06-22 12:43:15 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Yes, but then you would responsible for paying off the lien.
2006-06-22 12:42:06 · answer #9 · answered by ps2754 5 · 0⤊ 0⤋
it ensue to me do no longer fall for this scam they'll make up the taxed owed, through elevating the sale of the homestead and your interest will be a 2 in accordance to cent larger. you imagine you're transforming into a great deal, yet contained in the lengthy time period your no longer
2016-11-15 03:33:21 · answer #10 · answered by Anonymous · 0⤊ 0⤋