If I have a 41K tax lien on my condex and the bank forcloses, does the bank have to pay the lien off completely?
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If I have a 41K tax lien on my condex and the bank forcloses, does the bank have to pay the lien off completely?
Does the bank have to pay off the entire $41,000 lien in order for the IRS to remove the lie?. I have absolutely no other assests. No other real estate whatsoever for the IRS to attach with a lien. I am literally broke.
Asked on March 20, 2012 under Bankruptcy Law, New Hampshire
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you have a tax lien on your real property junior to the mortgage or turst deed on it, and assuming the parcel is foreclosed upon where there is no buyer for it, the tax lien is eliminated as a matter of law as a junior lien.
Assuming someone buys the property at foreclosure, the first mortgage holder would get paid off and then any junior lien holders. If there is not enough money to pay off the tax lien, then the IRS will seek other ways to get the money from you.
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