Tax Liens and Special Assessments

If for any reason government taxes, such as income or property taxes are not paid, they become a tax lien against the property. Special assessments are levied against property owners to pay for local improvements, such as underground utilities, street repair, or water projects. Payment for the project is secured by a special assessment which becomes a lien against real property. Property taxes and special assessments are specific liens whereas other government taxes are general liens.

I had a situation with a client who thought he could avoid paying the IRS a huge amount in back taxes. He was confident that he would be able to refinance his property take cash out and avoid this liability. He was even more confident because the IRS did not report anything owed on this credit report. But sure enough when i pulled his preliminary title report there it was, IRS tax lien on the property for $105,000.00, He was qualified to take out $125,000.00 this client had great credit scores. I informed him that he had to pay this lien and as a result he would only get $20,000.00 at closing. He even called the IRS to complain and try to talk them into removing this tax lien. He was obviously unsuccessful, i had told him not to waste his time and just pay this off. Reluctantly he agreed and he now pays his taxes on time. This client is also a big source of referrals for me.

I would like to hear your tax lien stories.........................