Posted on: 01st Oct, 2010 03:31 pm
If my home is forclosed and I have an IRS tax lien. What happens? Does the bank have to pay the tax lien before the home is sold? What are the consequences for me the ex homeowner?
Hi lguy,
Once the property is sold off at a foreclosure auction, the tax lien has to cleared off first. Once the tax lien is paid off, then the rest of amount, if any, will go towards the loan. If the loan is not fully satisfied, then you'll have to pay it off from your own pocket.
Thanks,
Jerry
Once the property is sold off at a foreclosure auction, the tax lien has to cleared off first. Once the tax lien is paid off, then the rest of amount, if any, will go towards the loan. If the loan is not fully satisfied, then you'll have to pay it off from your own pocket.
Thanks,
Jerry