Posted on: 07th Feb, 2010 08:51 pm
I'm considering purchasing a bank owned property in Michigan, but there was a state tax lien assessed six months and recorded ten months after the foreclosed property was sold to a bank in a Sheriffs Deed Sale. The tax lien is for $9579 of unpaid state taxes that the former property owner did not pay. If the back taxes pre-date the date of the Sheriffs Deed Sale, but the lien was assessed/recored after the Sheriff's Deed Sale, is this lien still enforceable and attached to this bank owned property? If it's not enforceable, is there a way to get this lien formally discharged so that the property can be sold with a clear title? Thanks for considering my question.
Hi jmargaris,
Tax liens are first priority liens and will have to be paid first when a property is sold. The lien remains on the property till the time it is paid in full. If the tax lien was put after the sheriff sale of the house, when you buy the property the lien will be there on the house. I don't think it can be discharged unless it is paid off. Thus, you cannot buy the property with a clear title. You will have to purchase it along with the tax lien.
Tax liens are first priority liens and will have to be paid first when a property is sold. The lien remains on the property till the time it is paid in full. If the tax lien was put after the sheriff sale of the house, when you buy the property the lien will be there on the house. I don't think it can be discharged unless it is paid off. Thus, you cannot buy the property with a clear title. You will have to purchase it along with the tax lien.
Pa. claims unpaid state income tax dating back 30 years and have no way of challenging. Was filed in Pa., but not in NY were I live and plan on selling property in next six months. Any suggestions? Thanks!
Hi boblt!
Welcome to forums!
As far as I know, a state lien is not enforceable in any other state. It is enforceable in that particular state.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I know, a state lien is not enforceable in any other state. It is enforceable in that particular state.
Feel free to ask if you've further queries.
Sussane