Getting rid of a tax lien


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This article by ForeclosureDeals.Com contains essential knowledge about tax liens, and the impact that they have on parties to a property deal.

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Getting rid of a tax lien

  1. 1. Getting Rid ofa Tax LienWhen the owner of a property fails to pay the Contents Introduction…………...................……...1taxes owing on it - or for that matter their Impact on the Owner......................…2personal income tax - the authorities can Impact on a Buyer..............................2place a hold on it until the bill is settled. Getting Rid of Tax Liens.....................2 Impact of Bad Credit Records….......3Getting rid of a tax lien on a property may besimple, but it can be difficult if you do nothave the money.
  2. 2. 2 Impact on the Owner   While an owner with a tax lien may put the property on the market and even sell it, the lien is on the property itself and runs with it. Few buyers will entertain this idea seriously, especially if the lien is for a large amount of money.Impact on a Buyer The purchaser of a property with a tax lien theoretically owes the seller’s tax, and willface the same problem as the previous owner did if they decide to sell. Some speculatorsbuy bad debt. Wise homeowners should rather not.Getting Rid of Tax Liens There are two ways to eliminate a tax lien. One is to pay theauthorities back their tax. This is easy when you have themoney. The other way to get rid of a tax lien is to wait for itto expire. This can take up to ten years, after which theoriginal debtor will still retain their bad credit record.
  3. 3. Impact of Bad Credit Records 3 A bad credit record arising from a tax lien can preventyou from buying a house at This isa burden that you do not need to carry with you throughlife. Our advice is to negotiate with the tax authority andagree a repayment plan that both of you canaccommodate. Getting rid of a tax lien on a property is usually essentialForeclosure Deals before selling real estate. A buyer is wise to insist that this12550 Biscayne Blvd, 306, North be done before ownership is passed. If the amount isMiami, FL 33181FAX: 1-347-402-6620 small, the buyer could even agree to pay it up, subject toContact@foreclosuredeals.comIf it’s not a deal, we won’t list it here! the other terms of the deal.Find us on the