Welcome to Mortgage Foreclosure Guide
Mortgage Foreclosure Sheriff Judgment Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Extinguish Tax Lien for a Foreclosure on a First Mortgage
from:A mortgage foreclosure can be a very complicated matter for the lender, the borrower and any other parties that may be involved. In a simple mortgage foreclosure, the other parties involved will be the lender and the borrower. The lender is usually a bank or other financial institution. In some situations, there may be a tax lien on the property. The tax lien may be from the IRS for money owed the government, a state tax lien for fines and fees owed or a county lien for delinquent property taxes. In situations like this, the question regarding the ability to extinguish a tax lien by foreclosure on a first mortgage has always risen.
In certain states the law varies regarding the right to extinguish tax liens with foreclosure on a first mortgage. These laws may be affected by the type of foreclosure sale it is. It is also depends on the type of tax lien that’s on the property. There are certain circumstances where the lender can extinguish tax liens with foreclosures on a first mortgage. This is particularly true with tax liens from the county or state. Liens by the Internal Revenue Service may or may not be extinguished depending on certain situations, mostly what type of notice they are given regarding the impending foreclosure.
In most states, a mortgage is a lien that takes precedence over any other liens that may be put on the place. But, this does not mean that it can extinguish tax liens. Foreclosures of first mortgage must take place in a legal manner, by proper notification to the other lien holders. Banks cannot automatically extinguish tax lien with foreclosure of first mortgage if there are ad valorem liens, federal tax liens or Uniform Commercial Code financial statements against the property. For instance, in the state of Alabama, the IRS requires at least 25 days notice of a mortgage foreclosure if they have a lien on the property.
In this case of the tax liens being extinguished, the IRS continues to have the right to redeem the property within 120 days of the sale date if the bank extinguished the tax liens. They also can maintain their tax liens on any excess of the proceeds after the bank gets what’s owed to them.
There have been cases that have been taken into court to battle the question of extinguished tax lien with foreclosure first mortgage sales. This often also happens in the case of delinquent property taxes where parcels of land are sold at bid, yet the lender still holds the title to the property. Always check your state laws to be sure of the laws regarding mortgage foreclosures and junior liens.
Mortgage Foreclosure Sheriff Judgment News
Gloucester County residents included in group to be repaid in foreclosure scam
Twenty-four people who were defrauded in the scheme will be paid back 100 percent, a total of $330,000.
Read more...Court records detail financial struggle of Sandmann's BBQ restaurant owners
Sandifers were sued by Mercantile Bank in October.
Read more...courts
courts MAHONING COUNTY Marriage licenses Matthew M. Rhoads, 54, of 55 Schenley Ave.,
Read more...Investigation: Neighborhoods crumble as homes sit in legal limbo
PART 2 OF 3: BAD-NEIGHBOR BANKS — A SUN SENTINEL INVESTIGATION Banks that made reckless home loans have been tiptoeing away from foreclosures in a tactic designed to cut their losses. The result: Orphaned, dilapidated homes dot the landscape from Kendall to Lake Worth.
Read more...Neighborhoods crumble as thousands of homes sit in legal limbo, Sun Sentinel finds
PART 2 OF 3: BAD-NEIGHBOR BANKS — A SUN SENTINEL INVESTIGATION Banks that made reckless home loans have been tiptoeing away from foreclosures in a tactic designed to cut their losses. The result: Orphaned, dilapidated homes dot the landscape from Kendall to Lake Worth.
Read more...Foreclosed homes irk neighbors
MARTINSBURG - A little over a year ago, neighbors say, the family at 406 W. Allegheny St., Martinsburg left in the middle of the night.
Read more...Legals May 16, 2012
Posted: Wednesday, May 16, 2012 3:00 am | Updated: 12:57 am, Wed May 23, 2012.
Read more...Cities target bad-neighbor banks with desperate tactics
PART 3 OF 3: BAD-NEIGHBOR BANKS — A SUN SENTINEL INVESTIGATION Citizens and cities across South Florida are fighting back, using increasingly desperate methods against the banks they blame for letting foreclosed houses run down their neighborhoods.
Read more...