Home Buying in Flatlands>Question Details

Carawc1402, Home Buyer in Flatlands, Brooklyn,...

Is it possible to get home sold with a tax lien on it that is in the process of being paid monthly? Nice home in old mill basin that I am

Asked by Carawc1402, Flatlands, Brooklyn, NY Wed Jul 7, 2010

considering selling.

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I would be happy to do a free market evaluation of your home so that you have a better understainding of your home's current value in today's market. Feel free to contact me at 917-334-8990 or fill in the form at BrooklynHomeValues.org.
Web Reference: http://MichaelDvorkin.com
0 votes Thank Flag Link Thu Jul 8, 2010
one of the frist thing to paid is the tax lien.
0 votes Thank Flag Link Wed Jul 7, 2010
The tax lien will be paid in full at the closing as long as you have enough equity in the property. In other words the sale price must cover all the taxes the lien as well as the mortgage. The tax lien is paid first. My advise is to call a local broker and get a market analysis and then do the math to see if it will cover.
0 votes Thank Flag Link Wed Jul 7, 2010
A tax lien takes first position over any other liens, including a 1st mortgage. Title can not transfer with a lien attached. The lien would need to be satisfied in order to transfer the property. The lien could be paid if there are any proceeds from the sale. If you are unable to pay off the lien from proceeds then it will be an issue. A real estate attorney would be your best recourse regarding this matter.
0 votes Thank Flag Link Wed Jul 7, 2010
Actually, it's possible to sell that property whether or not the lien gets paid off at closing. The buyer could buy the property subject-to all of the underlying liens (including your tax lien). Or you could petition that county/state/federal government entity to remove the lien from the property to allow you to sell it free and clear of that lien, and take back an unsecured note for the remainder.
0 votes Thank Flag Link Wed Jul 7, 2010
Dear Carawc1402:

If there are enough proceeds at the closing you should be able to pay the lien off in full at the time of the closing. You should have a lawyer helping you with this.

If you want, call me and we can discuss this further. I also live and do business in the Old Mill Basin area, if your thinking of selling I can give you plenty of sound advice. Good luck!

Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665
Cellular: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Wed Jul 7, 2010
Yes, it is possible provided the lien gets paid off in escrow.

Good luck with the sale, you should do fine.

Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Wed Jul 7, 2010
Hi Carawc1402
You can get your home on the market and in contract; however, at closing this will have to be paid in full.
Unless you or your attorney and work out some special arrangement and the buyer agrees to it. Its doubtful.
0 votes Thank Flag Link Wed Jul 7, 2010
Yes, but the lein needs to be paid beforehand--if financing is involved on the buyer's side, the lender will not lend with the oustanding lein, since the title will no be clear--also consult with an attorney who specializes in real estate for additional information and possible options.
0 votes Thank Flag Link Wed Jul 7, 2010
Yes, but only if the Seller has enough funds to pay the tax lien in full when your transaction is ready to file. No Lender will loan on a property with a tax lien in place nor should you accept an existing lien owed by the Seller, as a Buyer. You need to receive clear title. And, your Lender wants your mortgage to be the first lien.
0 votes Thank Flag Link Wed Jul 7, 2010
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