Order of Liens on a Property

Order of Liens on a Property

If you want to purchase a property’s tax lien, you have to know which county or state is conducive that might let you end up as the owner. Also, you might also want to think of buying tax deeds as it provides you better chances of owning properties.

To purchase tax lien certificates, you have to attend the tax sale auctions and bid. The process may vary from county to county or state to state.  Now if you won the bid for the property’s tax lien certificate, you will have to foreclose on the assets you have. This method may be different for some states but oftentimes, you need to wait until the redemption period is finished for you to begin foreclosure. Redemption periods may usually take 6 months to 2 years.

The listed below are the different kinds of liens:

1.)    IRS Liens

These liens are prioritized over any other liens on a property.  Once you know the IRS lien’s amount, you can speak with the IRS and make negotiations just how much they are willing to agree to forgive the arrearage.

2.)    Real Estate Liens

Real Estate Liens are next on the list of priorities and these need to be satisfied. If you attend an auction and you have paid just enough for the property’s first mortgage, everything under the priority list will be wiped away. Now if you purchase a second mortgage that means you also have purchased everything above that on the list of priorities.

3.)    Other liens:

• Second Mortgage
• Homeowner’s Association Fees
• Mechanic’s Lien
• Lawsuit
• Judgment

These liens on the priority list go by the date by when they were filed at the County Recorder’s Office.

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