Do IRS and property tax liens survive foreclosure?
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Do IRS and property tax liens survive foreclosure?
I recently purchased a property from a local sheriff’s auction. Apparently, the sheriff levied the property to sell it at the auction to satisfy a lien that the original owner had against him on his property. The property also has a mortgage, IRS/property tax liens against it. The attorneys representing the mortgage company notified me that they are foreclosing on the property and it will be auctioned next month. Since I already have money invested in the property, I will like to know if purchasing at auction is a good option and if so, will I get a clear title this time?
Asked on December 18, 2011 under Real Estate Law, Texas
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
IRS and property tax liens survive a foreclosure by a lender whose loan is secured by real property. If you are interested in purchasing a given property at a foreclosure sale, I recommend that you obtain a preliminary report on the property to see what liens are recorded against it before you even consider making a bid.
Likewise, you should consult with an experienced real estate attorney about your venture. My experience is that there are many pitfalls for the unwary in purchasing property at a foreclosure sale stemming from not knowing about senior liens that come with the sale to not knowing about the property's structural integrity.
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