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Question: OK I have a question… I’m the guy on the other side of the coin. After going through bankruptcy, I am now trying to sell my home to my father. I have two mortgages and two tax liens against the property. The tax liens are not property taxes. My father is paying enough for the property to pay for the mortgages but not the taxes… What happens to the liens after he buys the property… Do they go away?
Answer: Damn are you dumb. I guess that’s how you got your tit in a wringer in the first place. No they don’t go away. You will not be able to deliver the property with a warranty deed or full title insurance. Any title insurance issued will not cover the tax liens. Your dad or anyone else would be a fool to purchase this property from you in this manner.
Your Uncle has you by the short hairs. You are going to have to negotiate with him. The only other alternative is to allow the property to go into foreclosure and have Dad attempt to buy it on the courthouse steps. However, if there are others who are interested and the property sells for more than the mortgages, the tax liens will still need to be paid before you see a dime. If the liens are income tax liens, and recorded junior to the mortgage liens on your property, AND you are not personally getting any proceeds from the sale of the property, you may be able to obtain a release of the liens as to this specific property from the IRS. A competent escrow officer should be able to help you, or call the District Director’s office for the IRS and request the Application for Release of Lien. Also, if the tax liens were personal to you and not direct to your property, like property tax liens, then your bankruptcy may have/should have brought you some relief with respect to the liens. I know I am assuming the nature of the non-property tax lien you referred to, and if I’m wrong you can disregard this suggestion, but others may find this information helpful.
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