My question is if a purchase money first deed of trust in california recorded 11/04 is purchased at auction by an investor would an abstract of judgment recorded 7/12 and a notice of state tax lien from the Employment Development Department recorded 11/11 be wiped out.? I am thinking they would since they are both junior liens. Thanks for the help.
Sean you said: “If the IRS lien was recorded first then yes, it is a senior debt, and like ALL senior debt it must be paid by the buyer at trustee sale.” I want to bid on trustee sale property that is junior to a senior IRS lien, but as it is an all cash sale to the winning bidder, how exactly do you pay off a senior IRS lien at the sale? Or is this something you do in the intervening time while the Tustee Deed id being processed? Thanks in advance>
When you take a property subject to any senior lien, there is no rush to pay it off - unless of course it is set for some kind of lien sale itself in the immediate future.
I forgot to mention - and someone else will need to jump in - but can the IRS still add amounts, fees etc. to a recorded tax lien? IOW, can you rely on the recorded amount.
Exactly, In my case, Im looking at an auction where I would be bidding on a note junior to an IRS lien. So I pulled a copy of the IRS lien from NETR online and the IRS lien, filed in 2005, is around 6k (lists only one tax year ), not a deal killer if the 2nd (foreclosed note) at the sale is a bargain. But Ive tried to call the IRS to get the current balance on the lien and it was a no go due to taxpayer privacy laws. Does anyone know how to get an accurate payoff on a senior IRS tax lean prior to an auction of a note junior to it? Or does anyone know if the IRS has to file a new lien for every tax year not listed on the original lien? Reallly appreciate all input on this.
HI MRH, You may want to reach out to your local title company to see if they can help you. I would point out that if the foreclosing lender (junior to the IRS lien is an institutional lender it is LIKELY that this IRS lien was paid. I have never seen an institutional lender that will fund a loan behind an IRS lien. That said, it could be a title error and the title company missed the lien. This is where a good connection with a title officer can be worth their weight in gold.
According to the chain of title, it was USC Credit Union that funded the original note ahead of (junior) to the IRS lien. I agree it makes no sense that the lender may have overlooked it, but then again, it still remains. I did order a Trustee Sale Guarantee, which does list it, so I will try First American Title, who issued the TSG, and see if they can’t at least verify that the the IRSl ien is still on. But if it is, I am still in the dilema of verifying the pay-off balance, which at this point I am unable to confirm how that is done prior to the Trustees sale. At any rate, do apreciatte the tip…