If a homeowner has a tax lien on their house their IRS tax attorney may suggest that they try to sell to pay off their debts. When you are the buyer you want to do your research to make sure you know if there is a tax lien on the house before you buy.
Tax liens are put in place when the homeowners owe a specified amount of money in tax debts. These debts can be from income, sales, local or federal taxes and if you have enough it will result in a tax liens on your assets.
This is important for a homebuyer because the tax lien will need to be paid before the sale can be completed. In a good housing market the homeowner should be able to sell the home for a profit which they would use to pay off their tax liens. However any real estate lawyer in Chicago will tell you that sellers are not getting the price they want for their homes. If the seller cannot sell the home and make enough money to pay their tax liens off then the sale could be in jeopardy. There is a chance that they can ask for an IRS discharge which would allow the sale to go through.
When you decide to make an offer on a home your Chicago real estate attorneys may tell you about title insurance. Title insurance is required by mortgage companies to protect them (and you) from a third party who may have a lien. The title insurance company does extensive research on the property to ensure that no one else can claim it as their own.
If you happen to be able to afford to buy a house outright without a mortgage your Chicago real estate attorneys may recommend that you get title insurance for yourself.
Buying a home with a tax lien on it can go smoothly. Just make sure you are well educated and well protected during the sale and afterwards.
DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.
Comments
Post has no comments.