Posted by rm on January 24, 2003 at 17:50:30:
Forgive me for not remembering the exact details, but what about criminal penalties against the owner?
I researched a property about 6 months ago. Liens were in place on the property by either the DEA or the county prosecutor (might have been both).
Would something like that survive the sale?
Because I didn’t know, I left it alone.
However, that was probably a mistake because I’m sure most others avoided it for the same reason.
Why Foreclosing investing is not for newbies. - Posted by Stew(NE)
Posted by Stew(NE) on January 22, 2003 at 16:23:01:
Ahhhh Duck another bullet. Why Foreclosing investing is not for newbies. Getting everything ready to go to sale tommorrow.
Numbers look good. Had done my own preliminary search. Call my Title company to get a title Commitment two weeks ago. Finally it comes. It turned up a 10K state tax lien that was filed in December. So I called
the attorney holding the sale and asked had they got this release (I learned this from a previous sale where an attorney had a federal lein removed two days before the sale. I wasn’t ready to bid because
I didn’t know that could be done). Then I got the classic lawspeak. “We don’t considered any liens junior to my clients position to survive the sale?” WHAT???. I told her well according to state statues and
the title company the state lein WOULD survive the sale. She said she didn’t consider it so. Alll righty then. Next. Did I tell you the time the title work show
5 child support liens? The husband said," I don’t know anything about them."
This Lien will not survive the Sale… - Posted by JT-IN
Posted by JT-IN on January 23, 2003 at 13:22:48:
Since the lawsuit was filed long ago, (presumably 5 or 6 months ago, or longer), the lien filed in December would be meaningless. Yes, meaningless, even when it is a Tax Lien. You see, just because they might be the Gov’t, they still must play by the rules.
Any filing subsequent to the Lis Pendens is a moot lien, provided that the foreclosure filed is completed correctly, without lapse in the case. There could be a Million Dollar lien filed one day after the filing of the Foreclosure lawsuit, and that lien would not attach to the property following the sale and issue of a new deed. It is just how it works.
Now the State “may” still retain a right to redeem, following the Sheriff Sale as a result of this lien, but this rarely happens. Not sure what the State’s Right of Recission is in your state, (and this varies from state to state), but following the failure to Redeem the sale, the lien is moot, as to the Real property.
So what the Lady from the Plaintiff’s Atty’s office said is basically true… except what she didn’t add or say to her response is this… They stand on their title report, and their title report following the filing of the lawsuit did not show any liens Jr. to their clients lien “That were not served”… This is key… So inserting that into your thinking, she is absolutely correct in her statement, and she undoubtedly insinuated this in her reply; (JT’s interprestation). So I stand with her comment, case dismissed; clear title in favor of the Plaintiff. Tehe.
Just the way that I view things…
Re: Why Foreclosing investing is not for newbies. - Posted by JD
Posted by JD on January 23, 2003 at 10:43:27:
I find it hard to believe that a properly noticed junior State Tax lien would survive a NE foreclosure sale. Since the lien was recorded in December, presumably after the notice or foreclosure was recorded, proper notice is presumed. What is the NE Statute number you are refering to?
What about federal liens? - Posted by Blane (MI)
Posted by Blane (MI) on January 24, 2003 at 12:48:03:
Would this position include IRS liens? I’m dealing with a couple properties, one which has a lien, one which doesn’t but might at some point.
Re: What about federal liens? - Posted by JT-IN
Posted by JT-IN on January 24, 2003 at 13:06:46:
No, Fed’l Tax liens do not survive the sale either, as long as the USA was properly notified of the foreclosure action. The Fed and State gov’t do possess a right to redeem the sale, which rarely happens.
The fed’l right to redeem runs 120 days, except in your case (MI), it is extended to the length of the owners right to redeem, or 180 days in Mich. If a redemption right was 1 year, then the IRS is extended to the same rights of the homeowner. State redemption rights vary, but are generally 4 to 6 months, and again, this rarely happens.
The only liens that seem to survive the sale are liens for Child Support. I do not run into this so I can speak too much on it, but I read about others coming accross it more often lately.