Buyer beware of tax liens! Before you buy, be sure to check out the history of the property, be aware that any property that has a tax lien that is not settled prior to the closing, attaches itself to the new owners. Do not believe anyone who may tell you that a tax lien belongs to a former owner, if you purchase any property in any state that has a tax lien appearing on the title, the tax lien becomes yours and you will become liable for payment of these back taxes.
This isn’t to say that the tax lien cannot be taken care during the proceeds from the closing. If this is the case, the funds needed to satisfy the tax lien will be set aside during the closing process and forwarded to the appropriate government foreclosures body. The lien will then disappear from the title. Conduct due diligence to make certain that the lien is erased and be prepared with copies of the appropriate paperwork to verify that this action was to be taken.
A tax lien can cause headaches if you wish to sell or refinance your property. It appears as a blemish on the title of the property as well as your credit report and needs to be addressed as soon as possible. Do not procrastinate in taking care of this bill. You will never know if you need to tap into your home equity, or sell your house or use it as collateral, and all of these actions are impossible if there is a tax lien that shows up in any title search.
A quick title search of any property address will advise you of any type of mortgage or lien which is pending on the property. It pays to conduct a title search every year or so to make sure that the details found on the property are true, correct and accurate. Mistakes have been known to occur, and it is much easier and quicker to fix any discrepancies at a time when you are not in a hurry. There are several types of tax liens, a federal tax lien imposed upon a property by the federal government which may be due to unpaid income taxes, as well as a tax lien issued by a local governing body due to non payment of local real estate taxes. Take care of your tax liens before they prevent you from taking care of you. Try our 7 day risk free foreclosure listings trial membership for the latest foreclosed homes for sale on your area.
