Answers.com > Wiki Answers > Categories > Business & Finance > Personal Finance > Debt and Bankruptcy > What happens to a tax lien on a property lost in foreclosure?

What happens to a tax lien on a property lost in foreclosure?

In: Debt and Bankruptcy, Debt Collection, Liens, Foreclosure, Property Law [Edit categories]

Answer:

Tax liens are not wiped out by a foreclosure. They must be paid in order to clear the title to the property so that it can be sold. If the lender has to pay them it will add that amount to the amount you owe.

First answer by Kluss. Last edit by Kluss. Contributor trust: 698 [recommend contributor ]. Question popularity: 157 [recommend question].

[report abuse]

Can you answer these Debt and Bankruptcy questions?

	Do you have to give explanation of why you filed BK chapter 7 and show BJ documents to get an FHA loan?	Answer it!
	What companies have filed bankruptcy in Michigan?	Answer it!
	Can you lose your house if you file for a chapter 7?	Answer it!
	How soon after a car purchase can you file bankruptcy?	Answer it!
	Can you open up new credit after the chapter 7 has been discharged?	Answer it!

Relevant answers:

What happens to the liens on a property if it is lost to foreclosures?
The liens are usually in place when the bank or loan company takes possession of the property. The company/bank can pay off all liens and clear the title for resale or it can be put to auction with...
What happens to a lien you filed on a property and it is now in foreclosure?
If the foreclosing lien is junior to the lien in question (it was placed on the property after your lien and you did not sign an agreement allowing it to take a priority position over yours), then it...
Can a property with a tax lien be sold?
Yes, the title company that issues tolved in anything to do with that house & property have beeen pfoaid) the lien against the property will keep a seller from selling it with "Clear title "...
Tax Lien priority in foreclosure?
Well it depends on what type of Tax lien we are talking about. But first rule of thumb, liens have priority based on Irs Tax liens are prioritized like most other liens, by date of recordation....
What is a government tax foreclosure property?
It is property "seized" by the government for non-payment of taxes or in satisfaction of a tax lien. It can either be converted to government use or sold at auction to raise revenue.