If I have a 41K tax lien on my condex and the bank forcloses, does the bank have to pay the lien off completely?

Get Legal Help Today

 Secured with SHA-256 Encryption

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 9 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption