John C Brandy, Financial Consultant (Hourly)
@brandyjc
A tax lien typically happens when some legitimate taxing authority does not get paid. A property owner does not pay their property taxes, and the county eventually files a tax lien, which will be discovered by the bank or mortgage company or if no mortgage, then by the title company when you try to sell.
That lien will have to be paid, either as part of the closing or maybe even before to allow the closing.
The IRS and states with income tax can also file liens for non-payment of income tax.
One of the first places an investor will look when they find a property in foreclosure is the amount due if any in tax. That will come directly out of their profit.
No doubt there are even more valid scenarios, but disclaimer disclaimer, I'm not an attorney. ;).
If you're interested, we should talk a bit (for free). I specialize in education and collaboration that includes the professional stuff done without the high cost. And I give customers the same professional tools that are usually limited to the yacht-owner crowd. Let me know!
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